Stock market surpasses 12,000 for first time since 2008

The Dow Jones industrial average eclipsed 12,000 as investors responds to an increase in new home sales, President Obama's call to rework corporate tax policy and Federal Reserve's likely decision to continue its monetary stimulus. 

The average climbed to 12,013 on Wednesday. The last time the market closed above 12,000 was June 19, 2008. 

During his State of the Union address on Tuesday night, Obama urged lawmakers to close corporate tax loopholes and use the additional revenue to lower corporate tax rates for the first time in 25 years. 

Good news on the housing front may have also boosted the market. Sales of new houses climbed 18 percent to a 329,000 annual pace, the largest increase since 1992, according to figures released by the Commerce Department on Wednesday. 

Foreclosures are expected to increase this year while prices will probably bottom out sometime this spring, housing analysts have predicted.