Local market watchers placed little significance on the Dow's flirtation with the 10,000 mark yesterday, but said stocks should continue to roll higher in the face of rising corporate profits and the strengthening economy.

The Dow Jones Industrial Average cracked 10,000 early yesterday for the first time in 18 months before retreating. It finished the day at 9,923.42, down 41.85 points.

The widely followed index, which first breached 10,000 in March 1999, last hit that mark in May 2002.

The last close above 10,000 was May 24, 2002.

"This is [more than] the second time around for Dow 10,000, so there should be some healthy skepticism that it's just a number," said John Frankola, president and portfolio manager at Vista Investment Management in Pittsburgh.

Still, local experts said, signs point to continued gains.

"The economy is recovering, corporate profits are on the upswing and stock prices are fairly valued," Frankola said.

"I think we have a good outlook over the next several years."

Wexford money manager Ron Muhlenkamp agreed.

"Stock values are fair and the trend is up," he said.

Muhlenkamp said he was investing clients' money with home builders, specialty finance companies and consumer durables, "the kind of things that benefit when the economy expands."

So far this year, the Dow is up about 20 percent, but remains about 15 percent below its peak of 11,722 reached in January 2000.

Meanwhile, the technology-laden Nasdaq composite index, which last week crossed 2,000 for the first time in almost two years, is still down more than 60 percent from its record high of 5,048 in March 2000. Yesterday, the Nasdaq closed at 1908.32, off 40.53.

Charlie Smith, chief investment officer at Fort Pitt Capital Group in Green Tree, expects the market to post a solid year next year, but isn't expecting the Dow to recapture its all-time high.

"We don't think [corporate] earnings growth will be quite strong enough to do that. Perhaps the year after that," he said.

As expected, the Federal Reserve left interest rates at a 45-year low yesterday, eliciting a yawn from Wall Street.

"Whatever the Fed said was entirely priced into the market," Smith said.

He said the market was now focused on getting a hint of how second- and third-quarter earnings would shake out.

"First-quarter earnings, particularly technology, are looking to be good."