Dow, S&P 500 close at new highs

Adam Shell, USA TODAY4:05p.m. EDT April 10, 2013


The floor of the New York Stock Exchange.(Photo: Richard Drew, AP)
Story Highlights

  • Dow and S&P 500 hit highs Wednesday
  • The Dow set another closing record on Tuesday
  • Crude oil changes course,rises to $94.48 a barrel


NEW YORK — The stock market continued its upward march Wednesday, propelling both the Dow Jones industrial average and the Standard & Poor's 500-stock index to fresh all-time highs.
The Dow rose 124 points to a record 14,798, according to preliminary reports. The S&P, after flirting with a record Tuesday, hit a new high of 1,587, up 18 points. The tech-laden Nasdaq composite index rose 57 points 58 points to 3,296.
Stocks were the recipients of a wave of buying interest from investors who view the stock market, despite its lofty trading level, as a better place to park their money when cash and bonds offer puny yields.
Buying picked up after minutes of the Federal Reserve's March meeting were released before the market opened. Those minutes showed that central bankers are debating the timeline for an exit of their easy-money policies. But they have yet to signal an end to the stimulus.
The fresh highs are also coming despite Europe's continuing debt woes and the sabre-rattling in North Korea. Money is flowing into the stock market not only from U.S. investors seeking yield but also from foreign investors who view the U.S. as a haven, says Quincy Krosby, a market strategist at Prudential Financial.
"It's the beginning of a new quarter," says Krosby. "New money is being put to work. And money is being allocated to stocks both from U.S. investors and foreign buyers." Krosby says investors are likely betting that corporations will beat the low expectations for first-quarter profits.
And April has historically been a strong month for stocks, giving the market a seasonal tailwind.
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Still, Krosby says, investors should watch earnings closely to see how major U.S. banks fared in the first quarter, as banks are a good barometer of the health of the overall economy.
He says signs of a healthy market include laggards, such as small-company stocks and transportation stocks, starting to power higher again.
But stock market giddiness is making some Wall Street pros nervous.
Adam Hewison, president of financial analysis firm INO.com, warns that the market, while clearly in an uptrend, might run into trouble when the Fed finally starts to wean the economy off of easy money.
"The concern I have is what happens when they stop giving the market their fix," says Hewison. "The market is acting like a drug addict."
Hewison also warns that the volatile situation in Korea could cause market turbulence at any time, as can the European situation.
Overseas, stocks in Asia and Europe finished mostly higher.
Japan's Nikkei 225 was up 95.78 points or 0.73% to 13,288.13. Hong Kong's Hang Seng index was up a similar amount. The laggard was China's SSE index, which was up a scant 0.02%.
In Europe the U.K.'s FTSE 100 was up 1.17% to 6,387.37; Germany's Dax 30 rose a strong 2.27% to 7,810.63 and France's CAC 40 index was up 1.99% to 3,743.71.
The euro was down slightly to $1.3068; Gold was off $27 to 1,559.30. And crude oil was up 28 cents a barrel to $94.48.
http://www.usatoday.com/story/money/markets/2013/04/10/stocks-wednesday-4-10/2069785/