Stocks gain, pushing S&P 500 to five-year high
By The Associated Press
Published: Thursday, Jan. 10, 2013, 4:54 p.m.
NEW YORK — The Standard and Poor's 500 closed at another five-year high Thursday as the stock market got a boost from reports suggesting the outlook for economic growth may be improving.
The S&P 500 rose 11.10 points to 1,472.12, its highest close since December 2007, when the economy was entering the Great Recession. It also closed at a five-year high on Friday and is 93 points off its record close of 1,565.15, logged in October 2007.
The Dow Jones industrial average closed up 80.71 points at 13,471.22. The Nasdaq composite rose 15.95 points to 3,121.76.
European Central Bank President Mario Draghi said the struggling eurozone should start growing again this year, but he warned that the region has yet to reach a turning point in its struggle with recession and handling its government debt load.
The comments bolstered expectations that the worst of the region's crisis may be past.
Investors were also cheered by a report that showed China may gradually be emerging from its worst economic downturn since the 2008 global crisis.
Export growth for the world's second-largest economy rebounded strongly in December.
Stocks finished the day higher despite a U.S. government report that weekly applications for unemployment benefits ticked up last week.
The Labor Department said applications rose 4,000 to 371,000, the most in five weeks. The previous week's total was revised lower.
Companies are sitting on record cash piles, having rebuilt their balance sheets from the financial crisis that started five years ago.
Analysts at Deutsche Bank predict corporations will stop adding to those cash piles this year and instead start returning more cash to shareholders, helping push the S&P 500 up to 1,575 by the end of the year. That would be a 10 percent increase from where it ended 2012.
Traders are also waiting for more indications on the health of U.S. companies from earnings reports.
A good start this week to the earning reports for the fourth quarter of last year helped the market on Wednesday after aluminum company Alcoa predicted rising demand for aluminum this year.
Investors will be paying particular attention to the outlook for company sales during this reporting period, said Quincy Krosby, a market strategist at Prudential Financial.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Minorities crucial to filling Marcellus shale gas drilling jobs
- Regular or Roth? Pick either
- Municipal bonds do another about-face
- CVS suit could be test case
- Harsh winter sets back Western Pa. maple harvest
- Achieving proper credit balance
- Diaper makers do due diligence
- ‘Boomerang’ buyers get another chance at homeownership
- Sunken Great Lakes oil pipeline raises spill fears
- Encouraging employment report fails to stir much excitement to stock markets
- JPMorgan whistle-blower gets $64M for mortgage fraud tips