The lucky number 13 was crossed and held- as the Dow Jones Industrial Average closed above 13,000 for the first time in history, this week on April 25th, 2007.

Considered by some Wall Streeters to be a set-up for the classic ‘sell in May, walk away’ scenario the 13,089 closing price, a three digit point of gain of 135 points, was achieved on a backdrop of better than expected first quarter earnings news. Roughly 70% of reporting companies beat expectations including blow-out earnings from a broad based swath of sectors including technology (Apple), oil services (National Oilwell Varco), and defense (Boeing).

An additional boost to the market’s rally was the better than expected durable orders report and the widely held belief that a weakening U.S. Dollar would boost domestically based, multi-nationals’ corporate earnings.

However, most talking head experts were cautious, citing “trouble” in the housing market…and what would later be known as the sub-prime mess. Nevertheless, stock investors cheered the record-breaking prices, while short sellers licked their wounds.

This Week in Wall Street History

4/21/08