Dow Surged to a Record High on Economic Stimulus

The Dow Jones Industrial Average surged to a record high on Tuesday, breaking through levels last seen in 2007 as investors bet central banks will continue stimulus measures. The Dow Jones Industrial Average shot up 125.95 points, or 0.89 percent, to 14,253.77 at the close. The Standard & Poor’s 500 Index gained 14.59 points, or 0.96 percent, to 1,539.79. The Nasdaq Composite Index climbed 42.10 points, or 1.32 percent, to 3,224.13.

Service industries in the U.S. expanded in February at the fastest pace in a year as a recovery in housing rippled through the economy. The Institute for Supply Management’s non manufacturing index unexpectedly increased to 56 last month from 55.2 in January, the Tempe, Arizona-based group said today.

Republicans controlling the House are moving to take the roughest edges off across-the-board spending cuts that are just starting to take effect.

Mike Corbat, the new chief executive officer of Citigroup Inc (NYS:C), on Tuesday announced profit targets for 2015, and said that the global company has identified at least 21 markets where it must make improvements or leave. Corbat said the company intends to earn a return in 2015 of at least 10 percent on tangible common equity, compared with the 7.9 percent the company recorded in 2012.