Dow gains for tenth day, S&P 500 edges near record high

NDTV Profit Desk

15 Mar 2013, 08:20 AM IST

The Dow Jones industrial average extended its recent winning streak to ten straight days on Thursday, a string of gains last seen in late 1996, and ended at another record high as investors were encouraged by data showing the labor market's recovery was improving.

The S&P 500 took a late-day run at its record closing high of 1,565.15, but ended just 2 points away. The 30-stock Dow Jones industrial average has been setting record highs since March 5.

US equities have accelerated their rise 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.

"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 Solaris Group in Bedford Hills, New York.

"Fund flows really have reversed direction, and money started moving out of money markets and some from fixed income to equities. This kind of trend doesn't change easily so we can expect a lot more to come in," Mr Ghriskey added.

The Dow Jones industrial average gained 83.86 points, or 0.58 per cent, to 14,539.14, a record closing high.

The Standard & Poor's 500 Index rose 8.71 points, or 0.56 per cent, to 1,563.23, just about 2 points from its record closing high set on October 9, 2007.

The Nasdaq Composite Index advanced 13.81 points, or 0.43 per cent, to end at 3,258.93.

Three months into the year, the Dow has shot up nearly 11 per cent while the S&P 500 has gained 9.6 per cent.

Earlier Thursday, the Dow set another lifetime intraday high at 14,539.29.

Data on Thursday offered fresh signs of strength in the US labour market as the number of filings for new unemployment benefits fell for the third week in a row.

The US Producer Price Index rose in February by the most in five months as gasoline prices spiked, the Labor Department said in a separate report. There was, however, little sign of a broader increase in inflation pressures that could force the Fed to tighten monetary policy.

Boosted by the data, the housing sector index rose 1.5 per cent and the Dow Jones Transportation Average added 0.8 per cent.

Ten of the Dow's 30 stocks hit at least 52-week highs, including Walt Disney Co. International Business Machines shares climbed to a lifetime intraday high of $215.85, and traded at the close at $215.80, up 1.8 per cent.

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 1.4 per cent to $120, after earlier hitting a fresh 52-week intraday high of $120.26.

Apple Inc shares rose 1 per cent to $432.50. Its rival Samsung Electronics Co launched the latest Galaxy phone in New York on Thursday.

Shares of eBay, operator of one of the largest online marketplaces, climbed 1.6 per cent to $51.80 after Evercore Partners raised its rating to 'overweight'.

But on the downside, shares of Amazon, the world's biggest Internet retailer, fell 3.4 per cent to $265.74 after JPMorgan cut its rating on the stock to 'neutral' from 'overweight' and lowered its price target to $300 from $333.

E*Trade shares lost 8.2 per cent to $10.85 after Citadel LLC, its largest investor, said it is selling its entire stake in the discount brokerage and bank company.