Dow, S&P hit milestones on confidence, lower oil
By Caroline Valetkevitch
NEW YORK (Reuters) -
The Dow closed above 13,000 for the first time since May 2008 on Tuesday and the S&P 500 also hit a milestone, as buoyant U.S. consumer confidence data and a sharp drop in oil prices nudged the nearly five-month rally forward.
The S&P 500 closed above 1,370, its May 2011 intraday high, a move that could invite momentum buying as money managers chase performance, though low volumes lately have raised concerns about the rally's longevity.
"I don't see anything technically favoring a downturn right now," said Chris Burba, short-term market technician at Standard & Poor's in New York.
"No doubt (the market) has been overbought since the beginning of February, but in a powerful uptrend, price will continue higher for some time amid overbought conditions."
Technology shares ranked among the best performers, and the Nasdaq was trading at its highest since 2000. Micron Technology Inc (NSQ:MU) shot up 3.7 percent to $8.88 after Intel Corp said it will sell its stake in two wafer factories to Micron and buy chips from the company.
Intel advanced 1.3 percent to $27.24. The PHLX semiconductor index <.SOX> rose 1.6 percent.
The Dow Jones industrial average (DJI:DJI) gained 23.61 points, or 0.18 percent, to close at 13,005.12. The Standard & Poor's 500 Index (MXP:SPX) rose 4.59 points, or 0.34 percent, to end at 1,372.18. The Nasdaq Composite Index <.IXIC> climbed 20.60 points, or 0.69 percent, to finish at 2,986.76.
The S&P 500 is up about 9 percent since the start of the year, largely because of data showing stronger momentum in the economy and signs of progress in managing the euro zone's debt crisis, including a debt deal for Greece.
