Reply #57: Life is good, no? We're gonna be rich. - Dow hits record on Bernanke

[54anickel]

Blue-chip average hits trading high after Fed chief tells Congress inflation pressures seem to have waned; techs get a lift.

http://money.cnn.com/2007/02/14/markets/markets_1030/

NEW YORK (CNNMoney.com) -- Stocks rallied early Wednesday - pushing the Dow industrials to a record trading high - after Federal Reserve Chairman Ben Bernanke said inflation pressures appear to have eased.

The Dow Jones industrial average (up 58.33 to 12,713.18, Charts) jumped 0.4 percent, hitting a fresh trading high, around 50 minutes into the session.

The tech-fueled Nasdaq (up 26.24 to 2,486.12, Charts) composite jumped around 1 percent and the S&P 500 (up 9.73 to 1,453.99, Charts) index gained 0.7 percent.

Blue chips led a big rally Tuesday amid takeover talk about Alcoa, a rebound in commodity stocks and an upgrade of GM.

The tone was positive again Wednesday morning as investors digested the start of Bernanke's two-day semi-annual report to Congress on the economy and monetary policy.

In his prepared comments, the Fed chief said that "so far, the incoming data have supported the view that the current stance of policy is likely to foster sustainable economic growth and a gradual ebbing of core inflation."

more...