The Standard Poor’s 500-stock index set a five-year high on Thursday as stronger-than-expected exports from China spurred optimism about global growth prospects.
“Historically, January is a positive month for the market, and you’re seeing that play out,” said Michael Sheldon, chief market strategist at the RDM Financial Group in Westport, Conn.
Financial companies, up 1.4 percent, and energy stocks, with a gain of 1 percent, were the day’s top gaining sectors.
Analysts cited economic data from China as the day’s catalyst. A report showed the country’s export growth rebounded to a seven-month high in December, a strong finish to the year after seven straight quarters of slowdown.
“It is being interpreted positively that they’ve stopped the downturn,” Kurt Brunner, portfolio manager at the Swarthmore Group in Philadelphia, said. “If they continue to produce good growth, that’s going to be supportive for our global manufacturers.”
Wall Street’s fear gauge, the Chicago Board Options Exchange volatility index, or VIX, suggested markets were relatively calm. The index was down 2.3 percent at 13.49.
The Standard Poor’s 500-stock index rose 11.10 points, or 0.76 percent, to 1,472.12 on Thursday, which was 6 percent below the all-time closing high of 1,565.15 it hit on Oct. 9, 2007.
The Dow Jones industrial average gained 80.71 points, or 0.60 percent, to 13,471.22.
The Nasdaq composite index added 15.95 points, or 0.51 percent, to 3,121.76.
Financials benefited from events this week that helped clarify mortgage rules and banks’ potential exposure to the housing market. The consumer finance watchdog announced mortgage rules on Thursday that will force banks to use new criteria to determine whether a borrower can qualify for a home loan.
Earlier this week, several big mortgage lenders reached a deal with regulators to end a review of foreclosures mandated by the government.
Bank of America gained 3.06 percent, to $11.78, while Morgan Stanley was up 3.67 percent at $20.34, one day after sources said the bank planned to cut jobs.
Shares of the upscale jeweler Tiffany dropped 4.52 percent, to $60.40, after it said sales were flat during the holidays.
Herbalife stepped up its defense against the activist investor William A. Ackman, stressing it was a legitimate company with a mission to improve nutrition and help public health. The stock ended down 1.78 percent, to $39.24.
After the closing bell, American Express said it would cut about 5,400 jobs, and take about $600 million in after-tax charges in the fourth quarter.
Interest rates were higher. The Treasury’s benchmark 10-year note fell 11/32, to 97 18/32, and the yield rose to 1.90 percent from 1.86 percent late Wednesday.
Article source: http://www.nytimes.com/2013/01/11/business/daily-stock-market-activity.html?partner=rss&emc=rss
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