NEW YORK AND LOS ANGELES — Stocks rang in 2009 with gusto Friday, as the Dow Jones industrial average closed above 9,000 for the first time since early November in spite of glum news from the manufacturing sector.
It was the third straight day of gains for stocks, although Friday's advance came as much of Wall Street was out on an extended New Year's holiday.
Still, the market's gains this week gave analysts reason to be optimistic for a continued rebound from last year's wipeout.
"The front lines are no longer pounding with bad news," said Robert Bissell, president of Wells Capital Management in Los Angeles. "There's less headline pressure. There's less selling pressure because we're into a new calendar year. And as the days go by, we'll get into an inauguration for a new president and that'll bring hope."
Added Dan McMahon, head of equity trading at Raymond James & Associates in New York: "There is a lot of cautious optimism."
The Dow Jones average has quietly risen almost 20% from its Nov. 20 low as money managers who dumped stocks in late 2008 try to reestablish positions in some beaten-down shares.
Friday's rally was spearheaded by one of those bottom-dwellers: General Motors. The automaker's shares jumped 45 cents, or 14%, to $3.65 after the company received the first installment of its loan from the federal government. Rival Ford booked a 7% gain, rising 17 cents to $2.46.
Shares of consumer-discretionary companies, including retailers, also saw their fortunes improve. Nordstrom added $1.24 to $14.55, a 9% jump. Saks bested that with a 15% increase, adding 67 cents to $5.05.
Best Buy was also in the New Year's parade, rising $1.05 to $29.02. Office Depot marked its calendar with a 17% gain, adding 52 cents to $3.50.
Crude oil climbed $1.74 to $46.34 a barrel, and energy stocks rose with it. Exxon Mobil picked up $1.81, or $2%, to $81.64 and Chevron posted a 3% gain, adding $2.55 to $76.52.
The major indexes all marched ahead. The Dow rose 258.30 points, or 2.9%, to 9,034.69, for its first close above 9,000 since Nov. 5. It was the Dow's second-largest point gain ever for the first trading day of a new year.
The Standard & Poor's 500 rose 28.55 points, or 3.2%, to 931.80. By comparison, the index started off 2008 with a clunker, plunging 221 points.
The tech-heavy Nasdaq composite index climbed 55.18 points, or 3.5%, to 1,632.21.
