Dow and S&P 500 close at record highs
Health insurers rally on Medicare reimbursement news
NEW YORK (MarketWatch) — U.S. stocks gained Tuesday, with the Dow Jones Industrial Average and S&P 500 hitting record closing highs, as health insurers rallied on Medicare-reimbursement news and U.S. factory orders rose in February.“You have continued confirmation that the economy is in pretty good shape,” said Jim Dunigan, managing executive for investments at PNC Wealth Management.After rising 111 points to an all-time intraday high of 14,684.49, the Dow Jones Industrial Average (DJI JIA) added 89.16 points, or 0.6%, to end at 14,662.01, its loftiest close ever.

After coming within 2.4 points of its intraday record of 1,576.09 set on Oct. 11, 2007, the S&P 500 index (SNC:SPX) jumped 8.08 points, or 0.5%, to end at 1,570.25, clearing its record-high finish. Health care posted the biggest gain among the 10 major sectors, while materials performed the worst.

“You look at these levels and a lot of people are scratching their heads. But if you look at past peaks, the market is on much better footing than five years ago. Whether you look at earnings, dividends, sales or book values, valuations are in much better shape,” said Dunigan.

The technology-heavy Nasdaq Composite index (NASDAQ:COMP) rose 15.69 points, or 0.5%, to 3,254.86. http://www.marketwatch.com/story/us-stocks-ri...=afterbell