The Dow Jones Industrial Average closed above 11,000 Monday for the first time since before the 9/11 terrorist attacks, propelled by a five-day rally that has sent stocks soaring in 2006.
The Dow Jones Industrial Average rose 52.59, or 0.5 percent, to 11,011.90. The S & P; 500 edged up 4.70, or 0.4 percent, to 1,290.15, a 4 1/2 year high. The Nasdaq Composite Index gained 13.07, or 0.6 percent, to 2,318.69, its best close since Feb. 20, 2001.
Local movers were led by Guitar Center Inc., which gained 6.6 percent to $52.28, and Reliance Steel & Aluminum Co., which rose by 4.9 percent to $66.23. On the down side, DaVita Inc. slipped 1.3 percent to $54.65 and Edison International fell 1.2 percent to $44.48.
Shares of KB Home and Ryland Group Inc. rose 5.5 percent to $79.89 and 5.6 percent to $81.51, respectively, after investors were reassured by positive reports on the industry. A Merrill Lynch & Co. analyst said long-term demand will support the real estate market. And the Philadelphia Housing Sector Index, an index of 21 construction industry stocks, climbed 3.5 percent, led by Champion Enterprises Inc., which rose 8.4 percent.
Tetra Tech Inc. rose 3.8 percent to $16.52 after the Pasadena-based engineering and technical services provider's stock rating was raised to "buy" from "hold" by Jefferies & Co. The price target was set at $20 per share.
Superior Industries International Inc. jumped 2.6 percent to $22.05 after the Van Nuys-based supplier of aluminum wheels to automakers said it will hire a financial adviser to explore options for the sale of its suspension components business. As of Dec. 31, the book value of the assets of the components business was about $44 million.
Wesco Financial Corp. slipped 0.6 percent to $382 after the Pasadena-based company's stock was rated "sell" in new coverage by Matrix USA.
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