DOW - Stocks on Track for Best April in Two Years

Dow

12,763.31

+72.35

+0.57%

By: Abby Schultz

Special to CNBC.com

By: JeeYeon Park

CNBC News Associate

Stocks closed at new highs for yet another session despite mixed economic news and a varied batch of earnings reports, putting all three major indices on track for the best April since 2009.

The Dow Jones Industrial Average rose 72.35 points, or 0.6 percent, to close at 12,763.31, the highest close since May 20, 2008. The gain follows a rally Wednesday sparked by Fed chairman Ben Bernanke's remarks during his first-ever press conference.


Meanwhile, the S&P 500 rose 4.82 points, or 0.4 percent, to close at 1,360.48, the highest close since June 9, 2008.


The Nasdaq rose 2.65 points, or 0.09 percent, to close at 2,872.53, the highest close since Dec. 12, 2000. The tech-heavy index had traded in negative territory most of the session.

The CBOE Volatility Index, widely considered the best gauge of fear in the market, fell to nearly 14.




Market volatility has been low this year, and currently is at "very low levels," said Randy Frederick, director of trading and derivatives at Charles Schwab.



For April, the so-called fear index has averaged about 18.60, while last year, the VIX averaged about 22.50, Frederick said.



In late afternoon trading, VIX futures fell far less than the VIX itself, indicating the market could turn negative Friday morning, he added.

At session's end, the spread between the risk premium adjusted future and the VIX was about 1.40. A spread of more than 1.20 is a signal the VIX could reverse course, Frederick said. In this case that would mean stocks could fall as the VIX rises.


The Dow Jones Transportation Average ended at 5,510.66, above its record closing level of 5,492.95 on Thursday, which was reached on June 5, 2008.

Small cap stocks also ended at new record highs. The Russell 2000 Index of small caps rose 0.4 percent to 861.55 after hitting an all-time high on Wednesday, closing at 858.31.