Published August 27, 2014

 

Published August 27, 2014

• Dow    +29.83  17,106.70  +0.17%
• Nasdaq  +13.29  4,570.64  +0.29%
• S& P    +2.1  2,000.02  +0.11%

U.S. Stocks Climb as S& P 500 Index Surpasses 2,000 Level

U.S. stocks rose, sending the Standard & Poor&rsquo s 500 Index to close above 2,000 for the first time, as reports showed the biggest ever jump in durable-goods orders and an unexpected increase in consumer confidence.

Amazon.com Inc. added 2.3 percent after the company said it&rsquo s buying video-game service Twitch Interactive Inc. in one of its biggest-ever acquisitions. Tim Hortons Inc. jumped 8.5 percent after Burger King Worldwide Inc. agreed to acquire the coffee-and-doughnuts chain in a $11.4 billion cash-and-share deal. Best Buy Co. dropped 6.9 percent after posting a same-store sales decline that was steeper than analysts had projected.

The S& P 500 (SPX) rose 0.1 percent to 2,000.02 at 4 p.m. in New York, after climbing as high as 2,005.04. The Dow Jones Industrial Average added 29.83 points, or 0.2 percent, to 17,106.70, also reaching an all-time high intraday. About 4.5 billion shares changed hands on U.S. exchanges today, 20 percent below the three-month average.

&ldquo The 2,000 number got a lot of attention, but let&rsquo s get back to basics and see how the economy is doing,&rdquo Richard Sichel, chief investment officer at Philadelphia Trust Co., which oversees $2 billion, said in a phone interview.

Data today showed orders for U.S. durable goods jumped 23 percent in July as bookings surged for commercial aircraft. An air show in the U.K. helped drive a 318 percent jump in plane orders, the most since January 2011. A 0.5 percent drop in orders for non-military capital goods excluding aircraft last month followed a June increase of 5.4 percent.

Consumer Confidence

The Conference Board&rsquo s consumer confidence index rose to 92.4 in August, the highest since October 2007, from a revised 90.3 a month earlier, the private research group said.

The S& P 500 has advanced for the past three weeks and more than $1 trillion has been added to the value of American equities since a two-month low on Aug. 7 amid speculation central banks will continue to keep interest rates near zero even as the economy strengthens.

&ldquo I am still bullish on the U.S. market, but I do expect the S& P 500 to consolidate and slip back to 1,950-80 range as it&rsquo s due for a rest once it climbs to 2,000,&rdquo said Manish Singh, who helps manage $2 billion at Crossbreed Capital in London. &ldquo Any dip will be a shallow one. The central-bank and data narrative is still supportive of risk.&rdquo

The Chicago Board Options Exchange Volatility Index, the gauge of S& P options prices known as the VIX, slid 0.6 percent to 11.63. The gauge has lost 15 percent this year.

 

 

 

Published August 26, 2014

STOCKS

• Dow    +75.65  17,076.87 +0.44%
• Nasdaq    +18.8  4,557.35  +0.41%
• S& P    +9.52  1,997.92  +0.48%

U.S. Stocks Rally as S& P 500 Touches 2,000 for First Time

U.S. stocks rose, briefly sending the Standard & Poor&rsquo s 500 Index (SPX) above 2,000 for the first time ever, as corporate dealmaking and prospects for economic stimulus in Europe bolstered confidence in the bull market.

The S& P 500 rallied 0.5 percent to 1,997.92 at 4 p.m. in New York, paring gains in the afternoon after holding above 2,000 for less than two hours and reaching a record 2,001.95. The Dow Jones Industrial Average increased 75.65 points, or 0.4 percent, to 17,076.87. About 4.3 billion shares changed hands in the U.S. today, 23 percent below the three-month average.

&ldquo This number, 2,000, is a pretty significant number from psychological and financial points,&rdquo Joe Bell, senior equity analyst at Cincinnati-based Schaeffer&rsquo s Investment Research Inc., said in a phone interview. &ldquo Perhaps we might reach a little bit overbought status, and it looks like the index is going to take a breather there.&rdquo

The S& P 500 has recovered almost 100 points since its low during trading on Aug. 7, climbing on nine of 12 days to erase the 3.9 percent drop that began on July 24. The U.S. equity benchmark has advanced for the past three weeks and more than $900 billion has been added to the value of American equities.

 

Published August 25, 2014

STOCKS

 

Published August 18, 2014

NATIONAL DAY RALLY

 

Published August 18, 2014

Published August 16, 2014

 

• Dow    -50.67  16,662.91  -0.30%
• Nasdaq    +11.93  4,464.93  +0.27%
• S& P  -0.12  1,955.06  -0.01%

Stocks Erase Losses as Ukraine Conflict Boosts Oil Prices

U.S. stocks erased losses as increasing violence in Ukraine sent oil prices to the biggest increase in a month and spurred a rally in energy producers.

Anadarko Petroleum Corp., Cimarex Energy Co. and Kinder Morgan Inc. led a measure of oil and natural gas producers in the Standard & Poor&rsquo s 500 Index to a 0.5 percent advance, the most among 10 main industries. Nordstrom Inc. sank 5.2 percent after reporting sales that missed analysts&rsquo estimates. Monster Beverage Corp. soared 30 percent after Coca-Cola Co. agreed to buy a stake in the company.

The S& P 500 (SPX) pared declines in the late afternoon, ending the day little changed at 1,955.06 as 4 p.m. in New York. It earlier fell as much as 0.7 percent. The Dow Jones Industrial Average slid 50.67 points, or 0.3 percent, to 16,662.91. About 6 billion shares changed hands on U.S. exchanges today, 5.7 percent above the three-month average.

&ldquo Investors are trying to weed through what exactly is going on in Ukraine, and the market is drifting back,&rdquo Stephen Carl, principal and head equity trader at New York-based Williams Capital Group LP, said in a phone interview. &ldquo We have a geopolitical situation that needs to be addressed, and that&rsquo s overshadowing everything else in the market.&rdquo

Ukrainian government troops attacked an armed convoy that had crossed the border from Russian territory, Andriy Lysenko, a spokesman for the country&rsquo s military, told reporters in Kiev. Ukrainian soldiers continue to come under shelling, including rounds fired from Russia, he said.

Aid Convoy

The Russian Foreign Ministry said in a statement that Ukraine is attempting to disrupt an aid convoy, and called for a cease-fire to allow delivery of supplies. The government in Kiev has for months said that separatist rebels in its easternmost regions are receiving support from Russia, which backs them with artillery fire. Russia has repeatedly denied any involvement in the Ukrainian unrest.

The turmoil pushed energy prices higher, with West Texas Intermediate crude rising 1.9 percent to $97.35 a barrel. Kinder Morgan Inc. rallied 3.9 percent, bringing gains for the week to 15 percent after Houston billionaire Richard Kinder made a move to consolidate his pipeline empire. Cimarex and Anadarko climbed more than 2 percent.

The Chicago Board Options Exchange Volatility Index (VIX), which usually moves in the opposite direction to the S& P 500, jumped 5.9 percent to 13.15, halting five days of declines. The gauge lost 17 percent for the week.

Weekly Move

The S& P 500 rose 1.2 percent this week as signs of a slowing economy stoked bets central banks will leave interest rates near record lows for longer, overshadowing escalating tensions in Ukraine.

Economic data today showed industrial production advanced 0.4 percent in July, while the New York Fed Empire Manufacturing gauge fell more than estimated and consumer confidence unexpectedly declined to its lowest level of the year.

 

Published August 15, 2014

STOCKS

• Dow    +61.78  16,713.58  +0.37%
• Nasdaq  +18.87  4,453.00  +0.43%
• S& P  +8.46  1,955.18  +0.43%

Global Stocks Gain on Putin as Bonds Rise on Economy Oil Sinks

        Aug. 14 (Bloomberg) -- Global stocks rose as tensions eased in Ukraine, while bonds climbed on bets central banks will support the economy amid weaker-than-forecast data. Brent oil tumbled to a 13-month low to pace losses among commodities.

U.S. stocks rose, sending the Standard & Poor&rsquo s 500 Index to a two-week high, as speculation the crisis in Ukraine won&rsquo t escalate overshadowed weaker-than-estimated economic employment data.

        The MSCI All-Country World Index and the Standard & Poor&rsquo s  500 Index each added 0.4 percent at 4 p.m. in New York. The rate on 30-year Treasuries dropped 5 basis points after the sale of  $16 billion in bonds. An advance in European bonds sent Greek 10-year yields below 6 percent and pushed Germany&rsquo s to a record  0.998 percent. Russian shares increased for a fifth day.  Commodities erased the year&rsquo s gains as oil lost more than 2 percent. Warren Buffett&rsquo s Berkshire Hathaway Inc. traded above  $200,000 for the first time.

        The euro area&rsquo s recovery unexpectedly stalled in the second quarter as its three biggest economies failed to grow, underlining the vulnerability of the region to weak inflation and the Ukraine crisis. Russia shouldn&rsquo t isolate itself from the outside world, President Vladimir Putin said as he pledged to work to halt the conflict. Applications for unemployment benefits in the U.S. rose more than forecast last week, interrupting a steady decline to pre-recession lows.

        &ldquo The market is ebbing and flowing off of geopolitical news, it&rsquo s been all quiet in the past 24 hours, and that has given a positive push to the market today,&rdquo Chad Morganlander, a money manager at St. Louis-based Stifel, Nicolaus & Co., which oversees about $160 billion, said in a phone interview. &ldquo The overall jobs market in the U.S. remains bullish, but there is somewhat cautious tone on the European economy.&rdquo

 

                                                European Bonds

        Bond yields fell to records across the euro area as the darkening economic outlook boosted speculation the European Central Bank will take additional measures to revive growth.  France&rsquo s 10-year yield declined as much as four basis points to  1.39 percent and Ireland&rsquo s reached 2.09 percent. Rates in the Czech Republic also fell to the lowest on record after that nation&rsquo s economy stagnated in the second quarter.

        ECB President Mario Draghi committed last week to build on the unprecedented stimulus unveiled in June if the outlook deteriorates. U.K. Monetary Policy Committee member David Miles said today that the Bank of England could keep rates at record- low levels for &ldquo a bit longer yet.&rdquo His comment follows BOE Governor Mark Carney&rsquo s yesterday that the Britain&rsquo s expansion faces challenges.

        The pound was little changed at $1.6688 after falling to $1.6658, the lowest since April 8.

 

                                              European Economy

        The decline in German gross domestic product was greater than economists forecast, while the stagnation in France prompted the government to scrap its 2014 deficit target. For the region as a whole, gross domestic product was unchanged from the previous quarter, versus analyst estimates for 0.1 percent growth. A separate report showed consumer prices rose an annual  0.4 percent in July, less than half the ECB&rsquo s goal of just under  2 percent.

        In the U.S., jobless claims climbed by 21,000 to 311,000 in the period ended Aug. 9, the highest in six weeks, a Labor Department report showed. The median forecast of 48 economists surveyed by Bloomberg called for 295,000. The four-week average of claims, a less-volatile measure than the weekly figure, increased to 295,750 from 293,750 in the prior week that was the lowest since 2006.

        &ldquo We have to factor in some volatility in the summer jobless claims numbers and look at the four-week average,&rdquo John Manley, who helps oversee about $233 billion as chief equity strategist for Wells Fargo Funds Management in New York, said in a phone interview. &ldquo Even if the jobless claims numbers are higher than expected, this negativity can be overshadowed by the fact that rates will remain lower.&rdquo

 

                                                  Fed Stimulus

        The Federal Reserve is watching economic data to help gauge adjustments to monetary stimulus. The central bank remains on pace to wind down its monthly bond purchases in October. Fed Chair Janet Yellen has said officials will keep its benchmark interest rate low for a &ldquo considerable time&rdquo after the bond buying ends.

        Treasury 30-year yields fell 5 basis points to 3.20 percent as the U.S. sale of $16 billion in bonds drew the lowest yield at an auction since May 2013.

        The debt yielded 3.224 percent, compared with a forecast of  3.256 percent in a Bloomberg News survey of eight of the Federal Reserve&rsquo s 22 primary dealers. The bid-to-cover ratio, which gauges demand by the amount bid with the amount offered, was 2.60, versus an average 2.40 at the past 10 sales.

 

                                                Driving Demand

        &ldquo The Fed is on hold for at least probably a year,&rdquo Thomas di Galoma, head of fixed-income rates at ED& F Man Capital Markets in New York, said in a phone interview before the auction. &ldquo That is going to drive the demand for longer-dated securities going forward.&rdquo

        There&rsquo s a 34 percent chance the Fed will increase its benchmark interest-rate target to at least 0.5 percent by June, futures contracts indicate, down from a 51 percent likelihood seen on July 31. The central bank has held its target for the rate in a range of zero to 0.25 percent since December 2008.

        Wal-Mart Stores Inc., the world&rsquo s largest retailer, rose  0.5 percent even as it reported stagnant same-store sales growth and cut its earnings forecast for the year. Kohl&rsquo s Corp. climbed  3.3 percent as it reported earnings that topped estimates.

        About 75 percent of S& P 500 companies that have posted results this season have beaten analysts&rsquo estimates for profit, while 65 percent exceeded sales projections, according to data compiled by Bloomberg.

 

                                            Berkshire Hathaway

        Berkshire Hathaway Class A shares climbed 1.6 percent to $202,850, further validating Buffett&rsquo s vision for building wealth at the company he&rsquo s run for almost five decades. The level is more than 60 times Seaboard Corp., the agribusiness and transportation company that has the second-highest price among stocks listed on U.S. exchanges.

        The S& P 500 reached a record on July 24 before sliding as much as 3.9 percent as President Barack Obama authorized air strikes against militants in Iraq and concern grew that fighting in Ukraine would disrupt world trade. The gauge is 1.6 percent below its all-time high.

        The Stoxx 600 reversed a decline of as much as 0.4 percent before the Putin speech. The benchmark gauge has fallen 1.5 percent this month amid the global crises.

        Ukraine said yesterday it would accept the assistance due to arrive on hundreds of trucks from Russia if the Red Cross distributes the aid after customs and border officers examine it. The government in Kiev also announced its own plan to send in supplies today.

        The hryvnia strengthened 1.5 percent. Russia&rsquo s Micex advanced 0.6 percent.

 

                                                    Copper, Oil

        The Bloomberg Commodity Index slipped 0.5 percent to the lowest since Jan. 27. Brent oil dropped 2.2 percent, the most since Jan. 2, and West Texas Intermediate decreased 2.1 percent as the euro bloc&rsquo s economic recovery stalled amid signs of ample global supply. Libya said it will reopen its largest oil export port within days and U.S. crude supplies rose for the first time in seven weeks.

        Copper fell 0.6 percent, reaching a seven-week low.

        The yen weakened versus all of its 16 major peers amid speculation the crises in Ukraine and the Middle East have waned. The euro was little changed at $1.3367 after falling to  $1.3333 on Aug. 6, the least since Nov. 8.

        The MSCI All-Country World Index is poised for its largest weekly gain since April, increasing 1.6 percent over the past four days. The MSCI Emerging Markets Index rose 0.1 percent, climbing for a fourth day. The gauge has advanced 2.6 percent over that time period.

        The Hang Seng China Enterprises Index of mainland shares traded in Hong Kong fell from an eight-month high, retreating  1.1 percent. The Shanghai Composite Index slipped 0.7 percent, the most in a week, on growing concern government efforts to shore up economic growth will be insufficient.

        South Korea&rsquo s won rose the most since April 9 after the central bank lowered benchmark borrowing costs for the first time since May 2013 to revive economic growth.

 

Published August 14, 2014

 

 

• Dow    +91.26  16,651.80  +0.55%
• Nasdaq    +44.88  4,434.13  +1.02%
• S& P  +12.97  1,946.72  +0.67%

S& P 500 Hits 2-Week High as Retail Sales Fuel Fed Bets

U.S. stocks rose, pushing the Standard & Poor&rsquo s 500 Index to a two-week high, as a slowdown in retail sales boosted speculation the Federal Reserve won&rsquo t be forced to raise rates sooner than anticipated.

Amazon.com Inc. climbed 2.2 percent after ChannelAdvisor Corp. said the retailer&rsquo s same-store sales rose 40 percent in July. Vertex Pharmaceuticals Inc. jumped 3.9 percent to lead gains among health-care stocks. King Digital (KING) Entertainment Plc plummeted 23 percent trading after posting worse-than-forecast sales and cutting its 2014 outlook. Macy&rsquo s Inc. lost 5.5 percent after profit fell short of estimates.

The S& P 500 gained 0.7 percent to 1,946.72 at 4 p.m. in New York, the highest since July 30. The Dow Jones Industrial Average climbed 91.26 points, or 0.6 percent, to 16,651.80, also the highest in two weeks. About 5.1 billion shares changed hands on U.S. exchanges, 11 percent below the three-month average.

&ldquo There is some feeling that events overseas are beginning to cool down a little bit but also the retail numbers might suggest that the Fed is not going to be so aggressive in raising rates any time soon,&rdquo Bruce Bittles, chief investment strategist at Milwaukee-based RW Baird & Co., which oversees $110 billion, said in a phone interview. &ldquo That has been the backbone of the market for the past five years.&rdquo

Retail sales were little changed in July, the worst performance in six months, as car demand slowed and tepid wage growth restrained U.S. consumers. The slowdown in purchases followed a 0.2 percent advance in June, the Commerce Department reported today in Washington.

Recent data have shown U.S. gross domestic product expanded at a 4 percent annual pace in the second quarter, confirming the Fed&rsquo s view that a first-quarter contraction was transitory. Employers in the U.S. added more than 200,000 jobs for a sixth straight month in July, the longest such period since 1997.

Considerable Time

The economic strength had created concern that the Fed may be forced to act on rates sooner than anticipated, as the central bank remains on pace to wind down its monthly bond purchases in October. Fed Chair Janet Yellen has said officials will keep its benchmark low for a &ldquo considerable time&rdquo after the bond buying ends.

Three-rounds of bond purchases and record-low interest rates have helped push stocks higher by as much as 194 percent from a bear-market low in 2009.

The S& P 500 last closed at a record on July 24 before tumbling 3.9 percent on concerns that geopolitical crises from Ukraine to Israel and Iraq could derail the global economy. The gauge closed today 2.1 percent below its all-time high.

Iraq, Ukraine

In Iraq, Kurdish forces fought to retake positions overrun last week by Islamic State fighters in the northern part of the country, while a political standoff between President Fouad Masoum and Prime Minister Nouri al-Maliki continued.

Ukrainian officials said today they&rsquo d refuse entry to a truck convoy that Russia says is loaded with humanitarian assistance for rebel-held eastern areas, while pledging to send their own aid to the embattled region.

&ldquo The many geopolitical issues are a little quieter or on the back burner at the moment,&rdquo Richard Sichel, chief investment officer at Philadelphia Trust Co., which oversees $2 billion, said in a phone interview. &ldquo It&rsquo s given investors an opportunity to take a look and see if they want to add to positions, and it looks like that&rsquo s what they&rsquo re doing today.&rdquo

Four companies, including Macy&rsquo s and Cisco Systems Inc. report earnings today. About 75 percent of those that have posted results this season have beaten analyst estimates, while 64 percent have exceeded sales projections, data compiled by Bloomberg show.