Analysts Divided On Significance of Dow Record

How important is the Dow's 13,000 level? Kevin Cronin, chief investment officer at Putnam Investments, and Sam Stovall, Chief Investment Strategist at Standard & Poor's, debated the question on "Closing Bell."

Cronin said the 13,000 number is "an important psychological level" -- and even after breaking that barrier, "we think the market has continued upside." He said that "positive earnings surprises" and heated LBO activity is driving "some of the valuation changes."

But Stovall believes "the fundamentals haven't changed all that much."

He pointed out that while predictions for 5% earnings growth this quarter are up from 3% -- but "down from the 8% predicted earlier." He sees a "market disconnect" in both energy prices and transportation stocks rising simultaneously.

Stovall warned that the market may be "rushing ahead on hot blood."