DOW is at its big Number. 13,005!!!

13,005.12 23.61(0.18%)

Dow Ends Above 13,000 for First Time Since 2008

By: JeeYeon Park

CNBC.com Writer

Stocks logged a gain Tuesday despite mixed economic reports, with the Dow finishing above 13,000 for the first time since May 2008 and the S&P closing at its best level in almost four years.


The Dow Jones Industrial Average rose 23.61 points, or 0.18 percent, to close at 13,005.12, ending above the psychologically-important 13,000 level for the first time since May 2008.


The S&P 500 gained 4.59 points, or 0.34 percent, to close at 1,372.18, logging its best close since June 2008. The Nasdaq added 20.60 points, or 0.69 percent, to finish at 2986.76.


The CBOE Volatility Index, widely considered the best gauge of fear in the market, ended around 18.

On the economic front, consumer confidence jumped to a one-year high in February, gaining to 70.8 from an upwardly revised 61.5 in the previous month, according to the Conference Board.


However, durable goods orders slumped 4 percent in January, logging its biggest slide in almost three years, according to the Commerce Department, due to a large decline in business spending on machinery and equipment. Meanwhile, core capital goods tumbled 4.5 percent, the biggest drop in a year.

Oil prices extended their losses following the report, with U.S. light, sweet crude trading near $108 a barrel.

“The bigger picture seems to be the improving consumer confidence number,” said Ryan Detrick, senior technical strategist at Schaeffer’s Investment Research. “Still, investors seem to doubt the rally because people are frustrated that markets keep hitting multi-year highs.”

Detrick also noted that March and April have historically been the best months for equities and expects this year to be no different.

“We’ll continue to have volatility with the election coming up, but 1,500 [on the S&P] sometime this year is not out of the question,” said Detrick. “We think there’s still a lot of room for economic improvement.”

In addition, home prices fell for the fourth-consecutive month in December, with 18 of the 20 cities tracked posting a decline. The S&P Case/Shiller Home Price Index slid 3.8 percent, ending 2011 at the lowest levels since mid-2006.

Still, some experts say they are ready to "call a bottom" in the real estate market.

“Interest rates are at all-time lows and real estate prices are at 10-year lows," said Leif Thomsen, president of MortgageMaster. "People who don’t buy relatively soon will be kicking themselves.”

Thomsen's comments echo billionaire investor Warren Buffett's sentiments earlier this week that single-family homes are a very attractive investment.