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Dow tops 16,000 for first time as Boeing surges

Traders signal offers in the Dow Jones Industrial Average stock index futures pit on the CME Group trading floor in Chicago on October 14, 2009
Traders signal offers in the Dow Jones Industrial Average stock index futures pit on the CME Group trading floor in Chicago on October 14, 2009

The Dow and S&P 500 blasted to new records in early trade Monday fueled by a wave of new Boeing plane orders and continued positive investor sentiment for stocks.

After 90 minutes of trade, the Dow Jones Industrial Average was up 51.92 points (0.33 percent) at 16,013.62, after crossing the 16,000 milestone for the first time.

The broad-based S&P 500 made its first foray above 1,800, adding 1.96 (0.11 percent) at 1,800.14.

The tech-rich Nasdaq Composite Index rose 2.66 (0.07 percent) to 3,988.62.

The biggest gainer in the Dow was Boeing (+2.4 percent), which won more than $100 billion in new orders at the Dubai Airshow on Sunday.

The pair of index landmarks followed last week's series of records. On Friday, the Dow and the S&P 500 closed at record highs after Federal Reserve Vice Chair Janet Yellen, nominated to become Fed chair, delivered a strong defense of the central bank's easing policies at a Senate panel confirmation hearing the prior day.

Many analysts expect the markets will have a correction. "We don't know if the market is at, or very near, a top," said Briefing.com analyst Patrick O'Hare.O'Hare said. "When it seems so easy to make money in the stock market, though, is often the time the market delivers a reminder that it's a not a risk-free environment."

Dow component General Electric advanced 0.9 percent after announcing $26 billion in new jet engine orders at the Dubai Airshow.

JPMorgan Chase, another Dow component, rose 1.9 percent after announcing a $4.5 billion settlement Friday to compensate 21 institutional investors for losses on mortgage securities it and Bear Stearns sold before the financial crisis.

Tyson Foods increased 2.6 percent after earnings bested expectations by a penny at 70 cents per share and the company achieved annual sales growth of 4 percent after forecasting a range of 3-4 percent growth.

Bond prices rose. The yield on the 10-year US Treasury fell to 2.67 percent from 2.71 percent Friday, while the 30-year dropped to 3.77 percent from 3.80 percent. Bond prices and yields move inversely.

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