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The Dow Jones industrial average climbed above 16,000 for a second day, bolstered by a rally in Home Depot shares after stronger-than-expected earnings. A recovery in the US housing market helped Home Depot top profit and sales estimates for the third quarter, prompting the No 1 home improvement chain to raise its fiscal-year outlook for the third time this year. Its stock hit a lifetime high at $82.25. At midday, Home Depot was up 1.7 percent at $81, supporting the Dow and the S&P 500.
The major indexes continued to face resistance at key levels a day after the Dow traded above 16,000 and the S&P 500 topped 1,800 for the first time. Both indexes were unable to hold those levels at Monday's close. The Fed's stimulus and ultra-low interest-rate policy have helped the S&P 500 gain more than 25 percent so far in 2013, which would make it the best year for the index in a decade. The Dow Jones industrial average was up 26.26 points, or 0.16 percent, at 16,002.28. The Standard & Poor's 500 Index was up 0.43 of a point, or 0.02 percent, at 1,791.96. The Nasdaq Composite Index was up 1.59 points, or 0.04 percent, at 3,950.66.

Copyright Reuters, 2013

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