“The market definitely priced in one big theme earlier in the year, and that was a slowing economy,” Young said. “So today’s news on durable goods coming in well ahead of expectations was a positive surprise. But even when we get bad news on the housing front like we did (Tuesday), the market is able to look through it.”
Cozad's Kiddo said the current turmoil in the sub-prime mortgage sector has been overblown because the key issue is employment, which remains strong.
“I’m old enough to have lived through the savings and loan debacle of the early 1980s and interest rates at 15%,” Kiddoo said. “The economy continued to hum along well, and following 1982, we have the best bull run we’ve ever had in the stock market which followed a serious housing (downturn). (The current) housing situation isn’t anything like that. We’ve had a downturn following the greatest boom in housing, and I think it’s a little oversold in how it affects the market.”
John Burns, founder of Burns Advisory Group, said the market’s rise reflects more than just major companies with strong international sales benefiting from the weak dollar.
“We see very reasonable valuations just from a few years ago,” Burns said. “GDP is 35% to 40% higher than it was at the beginning of the decade and valuations just look fabulous. There is a bright future for investors.”
Of course, not everyone is so bullish.
Sam Stovall, Chief Investment Strategist at Standard & Poor's, doesn't see that much significance in Dow 13,000.
"The fundamentals haven't changed all that much," Stovall said on "Closing Bell. He warned that the market may "rushing ahead on hot blood."
Still, Kevin Cronin, chief investment officer at Putnam Investments, called Dow 13,000 "an important psychological level." And even after breaking that barrier, "we think the market has continued upside," he said.