Dow average closes within 50 points of 13,000
NEW YORK — The Dow Jones Industrial Average edged teasingly close to the 13,000 marker on Friday, a milestone it hasn’t reached since before the financial crisis brought the U.S. economy to its knees.
The Dow rose 45.79 points, or 0.4 percent, to close at 12,949.87, its highest close for the year so far.
The rest of the market struggled for direction on what turned out to be a quiet news day as traders prepared for the long Presidents’ Day weekend. The Standard & Poor’s 500 index rose 3.19 points, or 0.2 percent, to 1,361.23, also setting a record close for 2012. The Nasdaq composite, after surging Thursday, fell 8.07 points, or 0.3 percent, to 2,951.78.
There were some encouraging signs that Greece could secure its bailout deal next week. The finance ministers of the eurozone countries are meeting Monday to finalize the terms.
Economic indicators and U.S. consumer prices came in at about what analysts were expecting.
Though 13,000 for the Dow in some ways would be only a number on a board with no direct bearing on the fundamentals of the economy, its psychological effect still could be important. People and businesses tend to spend based on how they feel about the economy, and big, round numbers can affect feelings as much as money in the wallet.
“It’s not an insignificant psychological barrier,” said Marc Scudillo, managing officer at EisnerAmper in New Jersey. “People still need to have that vote of confidence that investing in U.S. companies is still the right direction to go long term.”
On the other hand, popping up to 13,000 also could have a contradictory effect on the Dow.
It almost would certainly trigger requirements in some investment firms to sell off some of their stocks, which could briefly push the index back down.
In the 33 trading days of 2012 to date, the Dow has risen on 19 and fallen on 14. The Dow is up 6 percent in the first seven weeks of this year. In all of 2011, it rose 5.5 percent.
Some of that could be an early-year pop. Last year, all three major indexes rose in the first quarter before giving up at least some of those gains by year’s end.
In other news:
CAMPBELL SOUP: It rose 3 percent after beating analysts’ expectations for quarterly earnings. The company is in the midst of a turnaround plan that includes adding more expensive, higher-quality soups and broadening offerings in its snack, beverage and other categories
H.J. HEINZ: It rose 5 percent after beating expectations for quarterly earnings and revenue. The ketchup maker was helped by a big sales increase in emerging markets like China, Russia and Latin America.
GILEAD SCIENCES: It plunged 14 percent after the drugmaker said a promising hepatitis C treatment it recently acquired may have to be used with other drugs in patients with the disease. The company said some patients in a small part of a mid-stage study relapsed within a month of completing treatment.
CATERPILLAR: An official familiar with the project says Caterpillar plans to build a new manufacturing plant in Georgia, bringing an estimated 1,400 jobs to the state.
GENERAL MILLS: It is lowering is fiscal 2012 adjusted earnings forecast because of soft U.S. volumes during December and January.