Dow breaks through 12,000, first time since 2008
The Dow Jones industrial average broke through 12,000 for the first time in two and half years Wednesday but edged lower in afternoon trading.
Investors were encouraged by President Barack Obama’s call to overhaul taxes on businesses and a jump in new home sales in December. The gains were held back by weak profit forecasts from Boeing Co., Xerox Corp. and other big names.
Obama said in his State of the Union address late Tuesday that he wanted to close corporate tax loopholes and use the additional revenue to lower tax rates on businesses for the first time in 25 years.
That change would be popular with business leaders from both political parties. The U.S. has some of the highest corporate tax rates in the industrialized world.
“If he can take steps to simplify the tax codes, be it for individuals or corporations, I think it would be a lot easier to do business,” said Jack Ablin, chief investment officer at Harris Private Bank.