NEW YORK-The US stock market cleared another barrier yesterday in its long recovery from the Great Recession: The Standard & Poor's 500 index closed above 1,400 for the first time since June 2008. The Dow Jones industrial average, driven higher like the rest of the market by more good economic news, set a four-year high. It climbed 58.66 points to finish at 13,252.76, its highest close since the last day of 2007. It was the seventh gain in a row for the Dow, the longest streak since February 2011. The government said applications for unemployment benefits fell last week to 351,000, matching a four-year low. When applications stay below 375,000, it usually signals that hiring is strong enough to lower the unemployment rate.
Optimism about the job market and the broader economic recovery has driven stocks steadily higher all year. The S&P is up more than 11 per cent, beating its performance for an average year, and the Dow is up more than eight per cent. Employers have added an average 245,000 jobs each month since December.
A separate report yesterday showed that prices paid by wholesalers rose less than expected in February, despite a spike in gasoline prices. The producer price index has increased 3.3 per cent in the past year, the smallest gain since August 2010. The S&P finished at 1,402.60, up 8.32 points. The close put it about 107 points shy of its record, 1,565.15, set in October 2007. And the index suggests stocks are still inexpensive by historical standards. (AP)