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S.&P. 500 Breaks Through 2007 Closing High

March 28, 2013 by Leave a Comment

The Standard Poor’s 500-stock index rose above its previous closing high, set in October 2007, in morning trading on Thursday.

The benchmark index was recently trading over 1,565.15 points, up 0.2 percent, despite a report of rising claims for unemployment benefits.

The blue-chip Dow Jones industrial average, which was up 0.3 percent Thursday in afternoon trading, already passed its 2007 milestone earlier this month, but the S.P. 500 is widely considered to be a broader-based reflection of the American stock market. The Nasdaq composite index of largely technology stocks added 0.1 percent Thursday.

The benchmark index has repeatedly come close to reaching its own record level in recent days, but has pulled back each time as investors grappled with concerns about the banking crisis in Cyprus. European stock markets rose on Thursday after Cypriot banks opened for the first time in two weeks with less turmoil than expected.

The new high caps a four-year run for the S.P. 500 that began in 2009 after the near collapse of the American financial system. The index rose to a high on Oct. 9, 2007, but then fell 57 percent to hit an ominous intraday low of 666.67 on March 6, 2009, and a closing low of 676.53 three days later.

The surge in the S.P. 500 this year still puts the index only slightly above where it was back in the heady days of 2000, when technology stocks were leading the market higher. Factoring in inflation, the S.P. 500 is still well below the highs reached in 2000 and 2007. The index is also still below the intraday record level of 1,576.09 hit on Oct. 11, 2007.

The current rally has been fed by bond-buying programs begun by the Federal Reserve, which helped nourish a recovery in corporate profits.

The gains have not generally been enjoyed by Americans without stock portfolios, leading to widespread skepticism about the sustainability of the market’s rise. But more recently there have been signs that the economic recovery may be broadening out into the rest of the economy.

The Commerce Department said Thursday that the economy grew at a 0.4 percent annual rate in the fourth quarter of 2012, which was faster than the 0.1 percent that the government previously estimated. The number of people filing for unemployment benefits rose 16,000 last week, more than predicted, but longer-term numbers have pointed to a recovery in the labor market. The overall unemployment rate dropped to its lowest level in four years in February.

The market gains on Thursday were relatively broad based, with 333 stocks in the S.P. 500 rising.

Article source: http://www.nytimes.com/2013/03/29/business/daily-stock-market-activity.html?partner=rss&emc=rss

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Europe’s Debt Problems Stir Wall Street Worry

March 27, 2013 by Leave a Comment

Renewed worries about Europe’s debt crisis weighed on the stock market on Wednesday and held the Standard Poor’s 500-stock index back from reaching a nominal high.

Investors are watching to see if Cyprus can shore up its banking system. They are also concerned about Italy, where political parties are struggling to form a new government.

The Standard Poor’s 500-stock index slipped 0.92 point to 1,562.85, less than three points short of its high set in October 2007.

The Dow Jones industrial average fell 33.49 points to close at 14,526.16, a loss of 0.2 percent. It had dropped as much as 120 points in morning trading, then spent the rest of the day climbing back.

The Nasdaq composite index edged up 4.04 points, or 0.1 percent, to 3,256.52.

Bad news from Europe and good news from the United States have tossed the stock market around over the last week. Stocks slumped on Monday as Cyprus scrambled to rescue its banks. They rallied on Tuesday on stronger home prices and an increase in factory orders.

“There are still plenty of worries about the banking system” in Europe, said J. J. Kinahan, chief derivatives strategist at TD Ameritrade. “But the U.S. really is on a nice little roll.”

Cyprus is preparing to reopen its banks on Thursday after a nearly two-week shutdown. An international bailout requires people with large bank balances to help pay for the rescue.

In Italy, a leading political party failed in its attempt to form a new government. The stalemate has raised fears that the country will be unable to manage its deep debts. Italy has one of the largest economies of the 17 countries that use the euro.

Worries also hit Europe’s bond markets especially hard. Borrowing rates for Italy and Spain shot higher, a sign of weaker confidence in their financial health. Rates for Germany and France, two of Europe’s more stable countries, sank as traders shifted money into their bonds.

Four of the 10 industry groups in the S. P. 500 index edged higher. Utilities and health care, which investors tend to buy when they want to play it safe, made the biggest gains.

Health care is the best-performing industry in the S. P. this year, up 14 percent. That compares with a 10 percent rise for the S. P. 500.

Kim Forrest, a senior equity analyst at Fort Pitt Capital, said it appeared that many investors were treating certain stocks as if they were bonds.

“There’s a recognition that bonds are overpriced, so people are moving into health care and utilities that pay a nice dividend,” she said. “Those are pretty boring investments, and by that I mean their prices don’t move a lot.”

News about Italy also helped drive traders into the safety of United States government bonds, pushing benchmark yields to their lowest level this month. The price of the 10-year Treasury note rose 19/32, to 101 13/32, while its yield dropped to 1.85 percent, from 1.91 percent late Tuesday.

Among the stocks on the move, Cliffs Natural Resources, an iron ore mining company, plunged 14 percent, the biggest loss in the S. P. 500. Analysts warned that falling iron ore prices would most likely sink the company’s stock. Cliffs fell $2.97 to $18.46.

Science Applications International surged 5 percent after the security and communications technology provider reported a fourth-quarter profit that was better than analysts were expecting. The company also announced a special dividend of $1 a share, and its stock gained 50 cents, to $13.32.

Article source: http://www.nytimes.com/2013/03/28/business/daily-stock-market-activity.html?partner=rss&emc=rss

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Cyprus Deal to Bring U.S. Stock Rally, Experts Say

March 25, 2013 by Leave a Comment

The last-ditch effort to save the banking system in Cyprus should bring a rally when U.S. stock markets open on Monday, according to several investment managers.

Cyprus secured a 10 billion euro ($13 billion) package of rescue loans in tense, last-ditch negotiations early Monday, In return for the bailout, Cyprus’ second-biggest bank, Laiki, will be restructured, and holders of deposits exceeding 100,000 euros will have to take losses.

It was unclear just how big of a hit big depositors will have to take, but the tax on deposits was expected to net several billion euros.

U.S. investors won’t care too much about who takes losses in Cyprus, as long as there’s a bailout that stops the run on banks in the Mediterranean island nation and keeps the eurozone stable, said Karyn Cavanaugh, market strategist at ING Investment Management in New York.

“If this works out, regardless of the terms, this is going to be good for the market,” she said Sunday night.

Without a deal by Monday night, the tiny Mediterranean island nation of about 1 million would have faced the prospect of bankruptcy, which could have forced it to become the first country to abandon the euro currency. That precedent would have roiled markets and spurred turmoil across the entire eurozone.

The tax on large deposits likely will be 10 to 20 percent, in order to raise about $7.5 billion, said Jack Ablin, chief investment officer for BMO Private Bank in Chicago. The move should be well received by U.S. investors because it’s the third bailout deal in the eurozone, including Greece and Spain, and in each case the countries have agreed to austerity plans.

“I suspect investors will take that news pretty well,” he said.

The Dow Jones industrial average dropped more than 90 points Thursday in part on fears that the crisis in Cyprus will intensify. But it rebounded and erased the loss on Friday.

Late Sunday, Dow Jones industrial futures were up 42 points to 14,501. The broader SP futures added 6 points to 1,558.00 and Nasdaq futures rose fractionally as well. Japan’s benchmark Nikkei 225 gained 1.35 percent to 12,505.51 in early trading.

ING’s Cavanaugh said she’s still concerned that the U.S. economy, with recent weak corporate earnings, may be hurt by economic troubles in Europe. She’s advising investors to be defensive, staying in the market but moving some of their portfolios into bonds.

Article source: http://www.nytimes.com/aponline/2013/03/24/business/ap-us-cyprus-markets.html?partner=rss&emc=rss

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Wall Street Shares Inch Higher

March 11, 2013 by Leave a Comment

Wall Street inched higher on Monday as earlier weakness prompted some buying and investors pushed the Standard Poor’s 500-stock index to its highest intraday level since October 2007.

By midday, the Dow Jones industrial average and the S..P 500 were trading in positive territory, continuing last week’s rally, which took the Dow to record highs. The S.P. 500 is only about 1 percent away from its all-time closing high.

In afternoon trading, the S.P. and the Dow were both up about 0.3 percent, while the Nasdaq composite was 0.1 percent higher.

Wall Street’s “fear gauge” — the CBOE Volatility Index, known as the VIX — dropped 5.5 percent to 11.90, the lowest level since April 2007.

Equities have rallied strongly since the beginning of the year, helped by signs of improvement in the economy, and pullbacks have been short lived as investors look to get into the market.

“There’s real belief in this rally,” said Tim Ghriskey, chief investment officer of Solaris Group in Bedford Hills, N.Y.

“There are lots of investors out there looking for opportunities to put more money to work in equities, and they’re using these little pullbacks we’ve had – and there haven’t been many – as purchasing opportunities.”

In the first three months of the year, the benchmark S.P. has gained nearly 9 percent.

The Dow has climbed 10 percent for the year.

Wall Street had traded slightly lower earlier in the day as Italy’s credit downgrade and disappointing Chinese economic data gave investors a reason to pause.

BlackBerry shares listed in the United States surged 11 percent after American carriers said they would soon begin selling the company’s long-delayed Z10 device. The stock shot up 11.1 percent to $14.51.

Dell shares were up 1.3 percent at $14.34 after the company agreed to give Carl Icahn a closer look at its books. The move came less than a week after the activist investor joined a growing chorus of opposition to plans by the computer maker’s founder, Michael Dell, to take the company private. Monday’s trading was above the take-private offer price of $13.65.

Genworth Financial shares jumped 6.3 percent to $10.46 after a report by Barron’s that the mortgage insurer’s stock could almost double in the next year, boosted by gains in mortgage and healthcare pricing.

In contrast, Dick’s Sporting Goods fell 10 percent to $45.53 after the retailer reported lower-than-expected fourth-quarter results and gave a disappointing forecast.

Article source: http://www.nytimes.com/2013/03/12/business/economy/daily-stock-market-activity.html?partner=rss&emc=rss

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Dow Hits 2nd New High, Helped by Jobless Report

March 7, 2013 by Leave a Comment

The stock market rose slightly on Thursday, pushing the Dow Jones industrial average to a new nominal high after it surpassed its previous peak two days ago. The gains came after a new report provided evidence that hiring was picking up.

The Labor Department reported that the number of Americans seeking unemployment benefits fell by 7,000 last week, driving the four-week average to its lowest point in five years. The drop in new jobless claims is a positive sign ahead of Friday’s employment report.

The Dow industrials rose 33.25 points, or 0.2 percent, to 14,329.49. The Standard Poor’s 500-stock index gained 2.80 points, or 0.2 percent, to 1,544.26. Both indexes rose for the fifth consecutive day.

The S. P. 500 is closing in on its own high close of 1,565.15, which was reached on Oct. 9, 2007, the same day as the Dow’s previous peak. The S. P. 500 would need to rise 20.89 points, or 1.4 percent, to set a nominal record, though both indexes are still far below their peaks if inflation is taken into account.

Investors have been buying stocks on optimism that employers are slowly starting to hire again and that the housing market is recovering. Growing company earnings are also encouraging investors to enter the market. The Dow is 9.4 percent higher so far this year and the S. P. 500 is up 8.3 percent.

“If you have a multiyear time horizon, equities are an attractive asset, but don’t be surprised to see some volatility, especially after the big run we’ve had,” said Michael Sheldon, chief market strategist at the RDM Financial Group.

The Nasdaq composite index advanced 9.72 points, or 0.3 percent, to 3,232.09. It is up 7 percent this year, but it is well below its high of more than 5,000, reached during the dot-com boom in 2000.

Boeing helped lead the Dow higher on Thursday, advancing $1.97, or 2.5 percent, to $81.05 after reports that American regulators were poised to approve a plan within days to permit the company to begin test flights of its 787 Dreamliner jet. The 787 fleet has been grounded since Jan. 16 because of safety concerns about the plane’s batteries.

Jeffrey Saut, chief investment strategist at Raymond James, predicted that any sell-off in stocks might be short-lived as investors who have missed out on the rally since the start of the year jump into the market.

“The rally is going to go higher than most people think,” Mr. Saut said. “This thing has caught most money managers flat-footed.”

The stock market’s rally this year has been helped in no small part by continuing economic stimulus from the Federal Reserve, which is buying $85 billion each month in Treasury bonds and mortgage-backed securities. That has kept interest rates near historical lows, reducing borrowing costs and encouraging investors to move money out of conservative investments like bonds and into stocks.

On Thursday, however, interest rates moved higher in the bond market. The price of the 10-year Treasury note fell 16/32, to 100 2/32, while its yield rose to 2 percent from 1.94 percent late on Wednesday.

Among the stocks making big moves, PetSmart fell $4.37, or 6.6 percent, to $62.18 after the company reported its fiscal fourth-quarter earnings. Profits for the pet store chain rose, but its forecast for this year disappointed investors.

Pier 1 Imports fell 96 cents to $22.28 after the company issued an earnings forecast that was below Wall Street analysts’ estimates.

The supermarket chain Kroger rose 89 cents, or 3 percent, to $30.25 after the company’s fourth-quarter profit handily beat Wall Street expectations.

Gap rose $1.41, or 4.1 percent, to $35.87 after it said a crucial revenue measure rose more than expected in February, helped by sales at its Gap and Old Navy stores.

Article source: http://www.nytimes.com/2013/03/08/business/economy/daily-stock-market-activity.html?partner=rss&emc=rss

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Wall Street Hesitates on China Concerns

March 4, 2013 by Leave a Comment

Stocks on Wall Street rose modestly on Monday as investors kept up a recent trend of buying on dips, with equities recovering from early weakness despite concerns about growth and China’s housing market.

The Standard Poor’s 500-stock index ended the day up 0.5 percent, the Dow Jones industrial average added 0.3 percent and the Nasdaq composite index rose 0.4 percent.

The S.P. 500 has jumped about 7 percent so far in 2013 and has resisted calls for a pullback even though there are few catalysts to drive shares definitively higher. The Dow closed less than 40 points away from hitting its closing high, while the S.P. 500 was 3 percent below its record close.

Concerns about budget cuts in the United States and the euro zone debt crisis also have served as reasons for investors to take a breather in the face of technical resistance. Any sign that the $85 billion in cuts were beginning to take a toll on the economy could jostle markets.

“The stock market still represents opportunity for investors, especially when you look at the domestic market,” aid Eric Teal, chief investment officer at First Citizens Bancshares in Raleigh, North Carolina, which manages $5 billion, “but it wouldn’t be surprising if we pulled back on the concerns over China and Europe.”

Retail stocks ranked among the strongest after Deutsche Bank raised price targets on Target and Macy’s . Target climbed 3.6 percent and Macy’s shares rose 2.4 percent. The SP retail index jumped 1.3 percent.

Bucking the trend was J.C. Penney, which is struggling to compete against its rivals, falling 4.6 percent.

Plans to tighten curbs on the housing market in China and a slowdown in the growth of that country’s services sector prompted worries about growth in the world’s second-largest economy. In addition, China’s services industries expanded at the slowest pace in five months in February.

Also weighing on the market, Italy could be inching closer toward another election within months after center-left leader Pier Luigi Bersani issued an ultimatum to anti-establishment 5-Star Movement boss Beppe Grillo to support a new government or return to the polls. European market indexes closed mixed.

Providing some support for the market, Janet Yellen, the Federal Reserve’s influential vice chairwoman, said the central bank’s aggressive monetary stimulus is warranted, given how far below its full potential the economy is operating.

Hess shares rose 4.1 percent after the company said it would exit its retail, energy marketing, and energy trading businesses. The company also boosted its dividend by 150 percent and announced a stock buyback program.

Ferro shares surged 31.2 percent after A. Schulman offered to buy the company for $563 million, although Ferro rejected the bid.

Article source: http://www.nytimes.com/2013/03/05/business/daily-stock-market-activity.html?partner=rss&emc=rss

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After a Sturdy Start, Markets Fall Back

March 1, 2013 by Leave a Comment

Stocks ended flat on Thursday, giving up modest gains late in the session and denying the Dow a chance to inch closer to a record high.

The Standard Poor’s 500-stock index still managed to close out February with a fourth consecutive month of gains. J. C. Penney was the day’s biggest loser, falling 17 percent to $17.57 after reporting a steep drop in sales.

The nation’s economy grew slightly in the fourth quarter, a turnaround from an earlier estimate showing contraction, according to the Commerce Department. A decline in new claims for unemployment benefits last week added to a batch of data suggesting that the economy continued its sluggish improvement.

The Dow was within striking distance of its record high after a gain of more than 7 percent this year. The Dow’s record closing high, set on Oct. 9, 2007, stands at 14,164.53, while the Dow’s intraday record high, set on Oct. 11, 2007, stands at 14,198.10.

The 20-stock Dow Jones Transportation Average, seen as a bet on future growth, is up 12.9 percent this year. It hit a record intraday high on Thursday.

“To push through to new highs, you would have to see consistent positive economic data in the U.S. and have Europe stabilize — those are two pretty big requirements,” said Jeff Morris, head of United States equities at Standard Life Investments in Boston.

“It wouldn’t surprise me to see us bounce around as we have the past couple of weeks,” he added.

After a strong January with gains of more than 5 percent, both the Dow and the S. P. tempered increases in February. Minutes from the Federal Reserve’s January meeting caused concerns that the central bank would pull back on its stimulus measures sooner than expected, while looming United States budget cuts and turbulent Italian elections tamped investors’ aggressiveness.

The Dow Jones industrial average shed 20.88 points, or 0.15 percent, to 14,054.49 at the close. The S. P. lost 1.31 points, or 0.09 percent, to 1,514.68. The Nasdaq fell 2.07 points, or 0.07 percent, to end at 3,160.19.

For the month, the Dow rose 1.4 percent, the S. P. 500 gained 1.1 percent and the Nasdaq advanced 0.6 percent.

Limited Brands and Netflix were among the best-performing consumer stocks. Shares of Limited Brands, the parent of the retailers Victoria’s Secret and Bath Body Works, gained 2.3 percent to $45.52. The stock of the video-streaming service Netflix climbed 2 percent to $188.08.

In contrast, shares of Groupon fell on weak revenue, with the daily deals company tumbling 24.3 percent to $4.53.

Cablevision slumped 9.6 percent to $13.99 after the cable provider reported more than $100 million in costs related to Hurricane Sandy and posted deeper video customer losses than expected.

On a positive note, the generic drugmaker Mylan gained 3.6 percent to $29.61 after it posted a 25 percent rise in fourth-quarter profit and said it would buy a unit of India’s Strides Arcolab for $1.6 billion. The benchmark 10-year Treasury note rose 6/32, to 101 3/32, and its yield fell to 1.88 percent, from 1.90 percent late on Wednesday.

Article source: http://www.nytimes.com/2013/03/01/business/daily-stock-market-activity.html?partner=rss&emc=rss

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After a Tease, Stocks End Lower

February 28, 2013 by Leave a Comment

Resisting expectations of a correction, Wall Street stocks traded higher for most of Thursday, with the Dow Jones industrial average within striking distance of a record high, but at the end of the session the major indexes retreated into slightly negative territory.

Investors found reasons to keep pushing markets higher following a sharp two-day rally, despite a read on economic growth that was weaker than expected.

But at the close, the Dow Jones industrial average was down 0.2 percent, the Standard Poor’s 500-stock index fell 0.1 percent and the Nasdaq composite index lost 0.1 percent.

Earlier, the Dow had risen 0.5 percent, taking it about 16 points shy of its October 2007 closing high.

The Commerce Department said Thursday that the economy grew 0.1 percent in the fourth quarter, a weaker pace than expected, although a slightly better performance in trade led the government to scratch an earlier estimate of a contraction in gross domestic product.

Separately, the number of Americans filing new claims for unemployment benefits fell more than expected last week, suggesting the labor market recovery was gaining some traction.

“The G.D.P. revision is positive but nothing to write home about, especially since it missed estimates,” said Adam Sarhan, chief executive of Sarhan Capital in New York.

While markets suffered steep losses earlier in the week on concerns over European debt, they have since recovered, with the gains fueled by strong data and comments from Federal Reserve chairman, Ben S. Bernanke, that showed continued support for the Fed’s economic stimulus policy.

“Bulls are still leading the market with the pullback bought up quickly, but we’re in a wait-and-see period after the big move we’ve had,” Mr. Sarhan said.

So far in February, the S.P. 500 has gained 1.2 percent, the Dow is up 1.6 percent and the Nasdaq has added 0.6 percent.

Investors will also be keeping an eye on the debate in Washington over government budget cuts that will take effect starting Friday if lawmakers fail to reach an agreement on spending and taxes. President Obama and Republican Congressional leaders arranged to hold last-ditch talks to prevent the cuts, but expectations were low that any deal would be produced.

“Investors have come to the realization that sequestration isn’t the end of the world and that it will eventually be fixed,” said Oliver Pursche, president of Gary Goldberg Financial Services in Suffern, N.Y. “But going into March, the risk is that the economy slows down and disappoints investors.”

J.C. Penney shares slumped 20.9 percent after the department store reported a steep drop in sales on Wednesday. Groupon also slumped on weak revenue, with the stock off 24 percent.

Sears Holdings started the day higher, after its earnings and sales beat expectations, but then fell 3 percent.

European shares ended modestly higher, while Asian markets closed sharply ahead.

Article source: http://www.nytimes.com/2013/03/01/business/daily-stock-market-activity.html?partner=rss&emc=rss

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Dow Nears Record as Investors Find Reasons to Buy

February 28, 2013 by Leave a Comment

Resisting expectations of a correction, Wall Street stocks traded higher for most of Thursday, with the Dow Jones industrial average within striking distance of a record high, but at the end of the session the major indexes retreated into slightly negative territory.

Investors found reasons to keep pushing markets higher following a sharp two-day rally, despite a read on economic growth that was weaker than expected.

But at the close, the Dow Jones industrial average was down 0.2 percent, the Standard Poor’s 500-stock index fell 0.1 percent and the Nasdaq composite index lost 0.1 percent.

Earlier, the Dow had risen 0.5 percent, taking it about 16 points shy of its October 2007 closing high.

The Commerce Department said Thursday that the economy grew 0.1 percent in the fourth quarter, a weaker pace than expected, although a slightly better performance in trade led the government to scratch an earlier estimate of a contraction in gross domestic product.

Separately, the number of Americans filing new claims for unemployment benefits fell more than expected last week, suggesting the labor market recovery was gaining some traction.

“The G.D.P. revision is positive but nothing to write home about, especially since it missed estimates,” said Adam Sarhan, chief executive of Sarhan Capital in New York.

While markets suffered steep losses earlier in the week on concerns over European debt, they have since recovered, with the gains fueled by strong data and comments from Federal Reserve chairman, Ben S. Bernanke, that showed continued support for the Fed’s economic stimulus policy.

“Bulls are still leading the market with the pullback bought up quickly, but we’re in a wait-and-see period after the big move we’ve had,” Mr. Sarhan said.

So far in February, the S.P. 500 has gained 1.2 percent, the Dow is up 1.6 percent and the Nasdaq has added 0.6 percent.

Investors will also be keeping an eye on the debate in Washington over government budget cuts that will take effect starting Friday if lawmakers fail to reach an agreement on spending and taxes. President Obama and Republican Congressional leaders arranged to hold last-ditch talks to prevent the cuts, but expectations were low that any deal would be produced.

“Investors have come to the realization that sequestration isn’t the end of the world and that it will eventually be fixed,” said Oliver Pursche, president of Gary Goldberg Financial Services in Suffern, N.Y. “But going into March, the risk is that the economy slows down and disappoints investors.”

J.C. Penney shares slumped 20.9 percent after the department store reported a steep drop in sales on Wednesday. Groupon also slumped on weak revenue, with the stock off 24 percent.

Sears Holdings started the day higher, after its earnings and sales beat expectations, but then fell 3 percent.

European shares ended modestly higher, while Asian markets closed sharply ahead.

Article source: http://www.nytimes.com/2013/03/01/business/daily-stock-market-activity.html?partner=rss&emc=rss

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Stock Indexes Edge Ahead

February 28, 2013 by Leave a Comment

Wall Street stocks traded higher Thursday as investors found a few reasons to keep pushing markets higher following a sharp two-day rally, despite a read on economic growth that was weaker than expected.

In afternoon trading, the Standard Poor’s 500-stock index rose 0.2 percent, the Dow Jones industrial average added 0.1 percent and the Nasdaq composite index advanced 0.3 percent

Wall Street has largely resisted expectations of a correction, with the Dow Jones industrial average within striking distance of an all-time high.

The Commerce Department said Thursday that the economy grew 0.1 percent in the fourth quarter, a weaker pace than expected, although a slightly better performance in trade led the government to scratch an earlier estimate of a contraction in gross domestic product.

Separately, the number of Americans filing new claims for unemployment benefits fell more than expected last week, suggesting the labor market recovery was gaining some traction.

“The G.D.P. revision is positive but nothing to write home about, especially since it missed estimates,” said Adam Sarhan, chief executive of Sarhan Capital in New York.

While markets suffered steep losses earlier in the week on concerns over European debt, they have since recovered, with the gains fueled by strong data and comments from Federal Reserve chairman, Ben S. Bernanke, that showed continued support for the Fed’s economic stimulus policy.

“Bulls are still leading the market with the pullback bought up quickly, but we’re in a wait-and-see period after the big move we’ve had,” Mr. Sarhan said.

So far in February, the S.P. 500 has gained 1.2 percent, the Dow is up 1.6 percent and the Nasdaq has added 0.6 percent.

Investors will also be keeping an eye on the debate in Washington over government budget cuts that will take effect starting Friday if lawmakers fail to reach an agreement on spending and taxes. President Obama and Republican Congressional leaders arranged to hold last-ditch talks to prevent the cuts, but expectations were low that any deal would be produced.

“Investors have come to the realization that sequestration isn’t the end of the world and that it will eventually be fixed,” said Oliver Pursche, president of Gary Goldberg Financial Services in Suffern, N.Y. “But going into March, the risk is that the economy slows down and disappoints investors.”

J.C. Penney shares slumped 20.9 percent after the department store reported a steep drop in sales on Wednesday. Groupon also slumped on weak revenue, with the stock off 24 percent.

Sears Holdings started the day higher, after its earnings and sales beat expectations, but then fell 3 percent.

European shares ended modestly higher, while Asian markets closed sharply ahead.

Article source: http://www.nytimes.com/2013/03/01/business/daily-stock-market-activity.html?partner=rss&emc=rss

Filed Under: Economy News Tagged With: , ,
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