Manufacturing Stocks Lead Record Dow Close

Strong cyclical stocks lifted the Dow Jones industrial average to its first close above the 11,000 barrier May 3, a little more than a month after the key barometer closed above the 10,000 milestone. The Dow jumped 225.65, or 2.09%, to 11,014.69, while weak Internet stocks sent the technology-laden NASDAQ falling 7.80, or 0.31%, to 2535.05. The Dow leapfrogged over the 10,900 level on its successful assault, albeit first attempt, on the 11,000 milestone. The blue-chip indicator finished above the 10,000 threshold on its fourth try on Mar 29, also a Monday. Minnesota Mining & Manufacturing, an IW Best-Managed Company, paced the Dow's trip deeper into record territory most of the session. 3M jumped 4 7/8, or 5.48%, to 93 7/8. Its gain accounted for 21.6 Dow points. General Motors Corp. was the second biggest Dow gainer, climbing 4 11/16 to 93 3/4. Goodyear Tire & Rubber Co. came in third, rising 3 9/16 to 60 3/4. "The leadership came from cyclical stocks," Hugh Johnson, head of the investment policy committee at First Albany Corp., said of the Dow's jump to its second millennial milestone in a short period of time. "What's really made this possible is the fact that there's been a shift in the market from large-cap companies," particularly high-tech companies like Dell Computer and Microsoft, to cyclical stocks, Johnson said.