The Dow Jones industrial average extended its winning streak to 10 days on Thursday and ended at another nominal high as investors were encouraged by data showing that the labor market’s recovery was improving.
The Standard Poor’s 500-stock index made a late-day run at its nominal closing high, set in October 2007, but it ended two points away. The Dow industrials have been setting nominal highs, unadjusted for inflation, since March 5, when they surpassed a high also set in October 2007.
The last time the Dow rose for 10 consecutive days was November 1996.
Stocks have accelerated their rally without a major consolidation since the start of the year, driven by improvement in the economy and the Federal Reserve’s continuation of its easy monetary policy.
So far this year, the Dow is up nearly 11 percent, while the S. P. 500 is up 9.6 percent.
“It’s simply a natural progression for prices to move to new highs in order for the market to advance. I don’t think it’s scaring investors,” said Tim Ghriskey, chief investment officer of the Solaris Group.
“Fund flows really have reversed direction, and money started moving out of money markets, and some from fixed income to equities,” Mr. Ghriskey said. “This kind of trend doesn’t change easily, so we can expect a lot more to come in.”
The Dow industrials gained 83.86 points, or 0.6 percent, to 14,539.14. The S. P. 500 rose 8.71 points, or 0.6 percent, to 1,563.23.
The Nasdaq composite index advanced 13.81 points, or 0.4 percent, to end at 3,258.93, still well below its nominal high of 5,000, reached in the dot-com boom in 2000.
Data on Thursday provided fresh signs of strength in the United States labor market as the number of new filings for unemployment benefits fell for the third consecutive week.
Ten of the Dow’s 30 stocks hit at least 52-week highs, including Walt Disney. I.B.M.’s shares hit a high of $215.80, up $3.74, or 1.8 percent.
Energy shares led the Dow and the S. P. 500 higher, with the S. P. energy sector index gaining 1.3 percent. Chevron was among the Dow’s biggest percentage gainers, rising $1.64, or 1.4 percent, to $120.
After the bell, the Federal Reserve released scores for 18 bank holding companies that showed how low their capital ratios would fall under proposed plans for dividends and stock buybacks if “severely adverse” economic conditions unfolded over the next two years. JPMorgan Chase shares fell 2 percent in extended-hours trading, while Goldman Sachs fell 1.9 percent.
During the regular session, Apple rose $4.15, or 1 percent, to $432.50, even though its rival, Samsung Electronics, introduced a new Galaxy smartphone on Thursday.
Shares of eBay, operator of one of the largest online marketplaces, climbed 82 cents, or 1.6 percent, to $51.80 after Evercore Partners raised its rating on the company to overweight.
On the downside, shares of Amazon, the world’s biggest Internet retailer, fell $9.36, or 3.4 percent, to $265.74 after JPMorgan cut its rating to neutral from overweight and reduced its price target to $300 from $333.
E*Trade shares lost 97 cents, or 8.2 percent, to $10.85 after Citadel, the company’s largest investor, said it was selling its stake in the company.
In the bond market, interest rates moved modestly higher. The price of the Treasury’s 10-year note slipped 4/32, to 99 22/32, while its yield rose to 2.04 percent from 2.02 percent late Wednesday.
Article source: http://www.nytimes.com/2013/03/15/business/daily-stock-market-activity.html?partner=rss&emc=rss
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