Today the Dow Jones passed 12,000 points for the first time and closed at 11,992 on positive signals from the housing and energy industries.Housing starts, the number of residential units where construction begins, jumped 5.9% signaling the housing market has not died but merely took a quick break and is still alive. It’s still too early to determine whether the housing market has rebounded or not. Housing starts must remain strong over the next three months in order to safely presume the market is safe again.
More positive news came from consumer prices which fell in September due to cheaper energy costs. Consumers enjoyed cheaper prices in the supermarket and in malls for the first time in months.
Several firms helped to push gains such as IBM and eBay. Both firms reported strong earnings, and their stocks were up 3.6% and 2% respectively.
I suspect that investors will carry the market over 12,000 points by Friday’s market close because there is not any bad news floating around. Let your profits grow but also consider selling some shares and taking profits.
