Dow Jones breaks through 12,000

The Dow has been buoyed by a number of factors

The Dow Jones index of major US shares swept above the 12,000 level for the first time on Wednesday but eased back to close short of the landmark level.

The index rose as high as 12,049.51, boosted by falling US inflation, oil and petrol prices and ongoing optimism about corporate earnings.

Despite easing somewhat, the Dow still set a new closing high of 11,992.68.

With investor sentiment upbeat, the Dow had already set record closing highs seven times during the past two weeks.

'Bullish euphoria'

The Dow, whose household name stocks include IBM, Microsoft and Wal-Mart, has now risen more than 350 points so far this month.

I'm in the more negative camp and I see 10,000 more likely than 13,000 Trader Michael Panzner Check the Dow Jones index

It took the index just seven and a half months to move from 11,000 to 12,000, having been knocked back by the dot-com bust, recession and the 2001 terror attacks over the previous five years.

IBM was the biggest riser on Wednesday, gaining 3.3% after it reported a 47% increase in quarterly profit.

How the Dow Jones has performed since 1996

Analysts broadly welcomed the Dow hitting the 12,000 mark, but most were also cautious, saying the way forward was now as likely to be down.

"Each new record creates a bit of momentum in its own right and adds to the bullish euphoria," said Michael Panzner, a Collins Stewart trader.

"[Yet] I am in the more negative camp and I see 10,000 more likely than 13,000. There is already evidence on the corporate earnings that the picture is not as benign as people were anticipating."

Mr Panzner pointed to weaker than expected results over night from Motorola, whose revenues fell short of market expectations.