Mixed views on 14,000 mark for the Dow

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Associated Press

Posted on February 1, 2013 at 3:01 PM

NEW YORK (AP) — Market watchers are divided over what today's stock market milestone means.

The Dow Jones industrial average has hit the 14,000 mark for the first time in five years. It's within range of its all-time high of 14,164 from October of 2007.

Peter Cardillo, chief market economist at Rockwell Global Capital, says the 14,000 mark will have a psychological impact, and will attract smaller investors.

Until the past few weeks, those investors had been shying away from stocks. But now, billions of dollars have been flowing into mutual funds targeting U.S. stocks.

But Joe Gordon, an asset manager in North Carolina, isn't celebrating. He thinks the gains won't last. Gordon says the fact that small investors are finally piling back in the stock market is a sign that it's getting overhyped and ready to fall.

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156-a-12-(Diane Swonk, chief economist, Mesirow (MEHZ'-ih-roh) Financial, in AP interview)-"planted out there"-Economist Diane Swonk of Mesirow Financial says she doesn't feel the Dow 14,000 is a true barometer on what's going on in the economy. (1 Feb 2013)

<<CUT *156 (02/01/13)>> 00:12 "planted out there"

APPHOTO NYRD105: Trader Frederick Reimer works on the floor of the New York Stock Exchange, Friday, Feb. 1, 2013. Evidence that the U.S. economic recovery is firmly on track drove markets higher on Friday, adding to the cheer from good economic indicators out of Europe. (AP Photo/Richard Drew) (1 Feb 2013)

<<APPHOTO NYRD105 (02/01/13)>>

APPHOTO NYRD104: A screen on the trading floor of the New York Stock Exchange, Friday, Feb. 1, 2013, shows the Dow Jones industrial average above 14,000 for the first time since October 2007. Evidence that the U.S. economic recovery is firmly on track drove markets higher on Friday, adding to the cheer from good economic indicators out of Europe.(AP Photo/Richard Drew) (1 Feb 2013)

<<APPHOTO NYRD104 (02/01/13)>>

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