Dow Blows Past 12,000 and Keeps Rising

With the market surging ahead in the past two days, the Dow could end the month with its largest October gain in its 115-year history, Marketwatch notestoday. The index is already up 11% this month, beating the previous record of 10.7% set in 1982.

This afternoon, the Dow is up 311 points at 12,180, and is flirting with session highs of 12,194.6. A deal to recapitalize European banks and force bondholders to accept losses on Greek debt has removed a large overhang from the market, even though many questions about the European bailout remain unanswered. The U.S. economy also grew 2% in the third quarter, helping quell concerns about a double-dip recession in the U.S.

Although the rally has been led by banks, which are up sharply, Alcoa (AA) is leading� blue chips with an 9% gain. Procter & Gamble (PG), which reported in-line earnings this morning, is the only Dow component in the red.