Wall Street stocks ended mixed on Monday despite strong economic data and earnings results from Caterpillar, after a rally last week that took the Standard Poor’s 500-stock index above 1,500 for the first time in more than five years.
The S.P. 500 was off 0.2 percent when trading closed, and the Dow Jones industrial average fell 0.1 percent. The Nasdaq composite index gained 0.2 percent.
Caterpillar, a Dow component, rose 2 percent after it reported adjusted fourth-quarter earnings that beat expectations, though revenue was slightly below forecasts. The heavy machinery maker also said it remained cautious on the economy despite recent improvements.
“You can’t find more of a global bellwhether than Cat, and people are pleased with the number, which suggests there could be less concern about slowing growth in China after this,” said Wayne Kaufman, chief market analyst at John Thomas Financial in New York.
Thomson Reuters data through Friday showed that of the 147 S.P. 500 companies that have reported earnings so far, 68 percent exceeded expectations. Since 1994, an average of 62 percent of companies have topped expectations, while the average over the past four quarters stands at 65 percent.
A strong start to the earnings season has bolstered equities, with major averages rising for four straight weeks. The S.P. had gained for eight straight days, its longest winning streak in eight years, and closed at its highest since Dec. 10, 2007. The Dow ended at its highest since Oct. 31, 2007.
The Commerce Department said Monday that orders for durable goods jumped 4.6 percent in December, a pace that far outstripped expectations for a rise of 1.8 percent.
“We continue to have a parade of better-than-expected economic reports. All in all, it’s a good picture. I think there’s a good chance we’ve reached a point of recognition where people don’t think the economy will crater,” Mr. Kaufman said.
In addition to a push from earnings, equities have also risen on an agreement in Washington to extend the government’s borrowing power. On Monday, Fitch Ratings said that agreement removed the near-term risk to the country’s AAA rating. Previously, the agency said the lack of an agreement would prompt a review of the sovereign rating.
Keryx Biopharmaceuticals said a late-stage trial of its experimental kidney disease drug met the main study goal of reducing phosphate levels in blood, sending shares up 78 percent.
Among bonds, the 10-year Treasury yield hovered just below 2 percent. The 30-year was yielding 3.145 percent.
In Europe, stocks ended mixed.
Article source: http://www.nytimes.com/2013/01/29/business/daily-stock-market-activity.html?partner=rss&emc=rss