Thread: Stocks end higher, S&P 500 at new all-time closing high

Breaking News S&P 500 index closes at an all-time high Read Story

Stocks end higher, S&P 500 at new closing high

• Adam Shell and Ray Goldbacher, USA TODAYUSATODAY

The Standard & Poor's 500-stock index, a broad measure of the U.S. stock market, on Thursday became the latest brand-name U.S. stock index to hit a record high since the bull market began in March 2009.

Stocks end higher, S&P 500 at new closing high

Adam Shell and Ray Goldbacher, USA TODAY4:13p.m. EDT March 28, 2013


Nope. They aren't applauding the new S&P 500 intraday high on March 28, 2013. But they are applauding in this file photo from March 25.(Photo: John Moore Getty, Images)
Story Highlights

• S&P 500 stock index finally set a new closing high, passing 2007 record
• Cyprus reopens its banks for the first time in 2 weeks
• Major U.S. stock indexes finished higher on final trading day of the quarter

The Standard & Poor's 500-stock index finally caught up with other major stock indexes, setting a new closing high on the final trading day of the first quarter.
U.S. financial markets are closed for Good Friday.
The broad measure of the U.S. stock market passed its previous closing high of 1,565.15 early Thursday to become the latest brand-name U.S. stock index to crack a record since the bull market began in March 2009.
Preliminary figures showed the S&P finished at 1,569.19, up 6.34 points or 0.41%. The Dow Jones industrial average closed at 14,578.54, up 52.38 or 0.36%; the Nasdaq composite index ended at 3,267.52, up 11.00 or 0.34%.
The benchmark S&P index, widely owned by investors via index mutual funds, broke through its previous closing high set Oct, 9, 2007. The new mark erases all of the nearly 57% the index lost during the 2007-2009 bear market.
The S&P 500 stock index started the day 2.30 points away from its all-time high. It got within 0.06 points in early trading before backing down -- a maddening pattern that started two days ago.
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The final breakthrough is significant, as it confirms the record-breaking price action of other closely watched indexes.
It joins a host of other U.S. stock indexes at new highs, such as the blue-chip Dow Jones industrial average, the small-company-dominated Russell 2000, and the Wilshire 5000, a broad index of roughly 3,700 names, including big, mid-size and small stocks.
For the year, the Dow is up 11.3%, the S&P is up 10%, and the Nasdaq composite index is up 8.2%.
"The bull market is four years old, yet it remains strong," says Ed Yardeni, chief investment strategist at Yardeni Research, as economic reports continue to show recoveries in jobs, housing and manufacturing. And near-term, concerns about the federal budget have been kicked down the road.
Others on Wall Street, however, warn of a near-term pullback.
"We are at a point short-term where you can flip a coin" as to whether stocks will keep going higher or give back some of their gains, says Leo Kelly, managing director an partner at HighTower's Kelly Wealth Management.
While Kelly says his firm has taken profits on stock-related investments that have enjoyed a nice run, he says stocks still make the most sense long term. "Stocks … are one of the investment vehicles that are going to make a decent rate of return. You won't be able to make a return on bonds" with prices already near record highs and yields at record lows.
The breakout came despite the banking crisis in Cyprus. As part of Cyprus' deal with the European Central Bank, International Monetary Fund and European Commission depositors with more than 100,000 euros (about $130,000) in the country's two largest banks are being forced to take losses.
Authorities have been putting measures in place to prevent a rush of euros out of the country's banks. Cash withdrawals will be limited to 300 euros ($383) per person each day, and no checks will be cashed.
Evan Lucas of IG Markets in Melbourne said the deal has sparked fears it may be repeated in other European nations that faced similar circumstances. In an e-mail commentary, he said investors saw the deal "as a monster in the shadows for banks in Portugal, Spain and Italy" since it requires depositors — not the public or its tax contributions — to take the pain.
In Asia on Thursday, Japan's Nikkei 225 index tumbled 1.26% to 12,335.96 and Hong Kong's Hang Seng index lost 0.91% to 22,260.62.
Wall Street stocks closed mostly lower Wednesday on Europe worries. The Dow dropped 0.2% to close at 14,526.16. The S&P 500 fell less than 0.1% to 1,562.85. The Nasdaq composite index rose 0.1% to 3,256.52.
COMMENTARY: Cyprus omen for U.S. stock rally
Ongoing political stalemate in Italy is another cause concern for markets on Thursday. Italy is the third-largest economy of the 17 countries that use the euro and despite a recent election no political party has yet been able to form a new government. The FTSE MIB index rose 0.54% to 15,435 on Thursday.
Benchmark oil for May delivery was up 59 cents to $97.17 per barrel in electronic trading on the New York Mercantile Exchange. The contract gained 24 cents to close at a five-week high of $96.68 per barrel on the Nymex on Wednesday.
http://www.usatoday.com/story/money/markets/2013/03/28/stocks-3-28/2027123/

U.S. stocks notch best first quarter since 1998

In first quarter, Dow gains 8.1%, Nasdaq Composite up nearly 19%

March 30, 2012|Kate Gibson, MarketWatch

NEW YORK (MarketWatch) — U.S. stocks on Friday snared their biggest first-quarter gain in more than a decade, after a better-than-anticipated rise in consumer confidence and spending boosted views of the economy.

The S&P 500’s 12% rise in the first quarter would represent “a stunning year, and is even more so as a quarter,” said Marc Pado, U.S. market strategist at DowBull.com.

“But I do think it’s a comeback from an underexposed level for institutions; they were so scared they were hiding in defensive issues, and are now looking for opportunities to make money and not just hide. That shift alone has also helped move markets higher,” he said.

Up 8.1% for the quarter, the Dow Jones Industrial Average (USJIA) rose 66.22 points on Friday, or 0.5%, to 13,212, sealing its best first-quarter point gain in its history.

“There is a general sense that we’ve gotten past the worst of the European crisis and the U.S. economy is gaining momentum,” said Alan Skrainka, chief investment officer at Cornerstone Wealth Management.

“People are embracing the idea that maybe it is safe to go back into the stock market again,” he added. Read about how stock market’s rise left many behind.

The S&P 500 (US:SPX) climbed 5.19 points, or 0.4%, to 1,408.47, garnering its biggest first-quarter advance since 1998.

Energy, healthcare and consumer staples rose the most among its 10 major industry groups, with the latter two “indicating a somewhat defensive tone,” said Michael Sheldon, chief market strategist at RDM Financial.

“Today is the last day of the quarter, so there are the cross currents between under-invested portfolio managers and those taking profits after a fairly decent runup in the market so far this year,” Sheldon said on the end-of-quarter positioning.

“There’s often a lot of selling of positions that didn’t quite work out, and end-of-quarter window dressing, with some shelling out a major position in Apple (US:AAPL) of course,” said Cornerstone’s Skrainka. “A lot of managers have a lot of egg on their face since they didn’t own the stock,” he added of the technology company’s 48% climb so far this year.

Shares of iPhone and iPad maker Apple dropped 1.7% on Friday.

The tech-heavy Nasdaq Composite (US:COMP) fell 3.79 points, or 0.1%, to 3,091.57, leaving it up 18.7% for the first quarter.

For every share declining more than two rose on the New York Stock Exchange, where 966 million shares traded. Composite volume topped 3.6 billion.

Oil prices finished at $103.02 a barrel on the New York Mercantile Exchange. Gold futures for June delivery (US:GCM2) gained $17, or 1%, to end at $1,671.90 an ounce on the Comex division of the Nymex.
Safety wall
Euro-area finance ministers agreed on Friday to raise their financial firewall to 700 billion euros ($934 billion) in their latest effort to contain the region’s debt crisis.Read more about move.

“Europe has lent banks a trillion euros, which should provide a backstop over the next several quarters. That has taken a certain amount of systemic risk off the table, at least for now,” noted Sheldon.

Friday’s economic reports had the Commerce Department reporting spending rose 0.8% in February as income climbed 0.2%. Read story on rise in purchases.

And, the University of Michigan and Thomson Reuters said consumer sentiment in March climbed to its highest level in more than a year, as Americans gained more confidence about their economic conditions. See full story on sentiment.

Separately, a read on business activity in the Chicago area decelerated in March, but remained above 60% for a fifth consecutive month.

“There’s a general sense that we’ve gotten past the worst of the European crisis and the U.S. economy is gaining some momentum. We’re seeing more confidence on the part of investors, and that’s why they are coming into the market,” said Skrainka.

http://articles.marketwatch.com/2012...g-stock-market