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Dow jumps past 12,000 on strong manufacturing report

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The stock market is firing on all cylinders Tuesday, pushing the Dow Jones industrial average back above the 12,000 level.

Egypt’s social upheaval seems barely an afterthought.

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The Dow was up 146 points, or 1.2%, to 12,038 at about 10:45 a.m. PST amid a broad market rally. A close above 12,000 would be the first since June 2008.

The Institute for Supply Management’s index of manufacturing activity nationwide in January came in well above expectations, at 60.8 compared with analysts’ consensus estimate of 58.0.

Any index reading above 50 indicates expansion. The January figure is the highest since May 2004.

Many market bulls wanted evidence that the economy’s strength in the fourth quarter carried into the first quarter. The ISM index is confirmation.

“Overall, this report ranks among the strongest signs to date that the economy is moving into a phase of stronger sustainable growth,” said David Resler, economist at Nomura Securities in New York.

What’s more, the gains in manufacturing are important because they can help offset the economic drag from a still-dismal housing market.

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Strong January car sales underscored the renewed optimism about the manufacturing sector.

Wall Street also is cheering some upbeat quarterly earnings reports from companies including Pfizer and UPS.

Meanwhile, crude oil prices have stabilized after surging the last two days. Near-term oil futures were off 69 cents to $91.50 a barrel in New York. Middle East unrest drove oil up $3.70 a barrel on Friday and $2.85 on Monday.

-- Tom Petruno

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