Dow Jones hits record as oil continues to fall

The Dow Jones industrial average hit an all-time high last night, surpassing the previous record set in 2000, as investors bet…

The Dow Jones industrial average hit an all-time high last night, surpassing the previous record set in 2000, as investors bet that sliding crude oil prices will stimulate consumer spending and lift profits.

During the session, the 110-year-old Dow climbed to 11,758.95, topping its previous intraday record of 11,750.28 reached on January 14th, 2000, when investors rode the Internet stock mania. It crashed two months later.

The blue-chip Dow average also hit a record closing high, rising 56.99 points, or 0.49 per cent, to end at 11.727.34 - above its previous record close at 11,722.98, set on January 14th, 2000.

Shares of big manufacturers such as Boeing and United Technologies, along with Wal-Mart and bank stocks, including JP Morgan Chase, helped lead the Dow's advance.

READ MORE

This reflected investors' belief that lower crude oil prices will ripple through the economy and improve companies' profits by cutting their expenses, while giving consumers more money to spend.

The Nasdaq Composite Index gained 6.05 points, or 0.27 per cent, to close at 2,243.65.

US crude oil futures prices ended nearly 4 per cent lower, after hitting fresh seven-month lows, dragged down by a US inventory glut and a fading hurricane threat.

Crude for November delivery fell $2.35, or 3.9 per cent, to settle at $58.68 a barrel on the New York Mercantile Exchange. Its session low was $58.60, the lowest front-month crude futures price since February 16th.