Share This Page

S&P 500 in longest winning streak since 2004

| Friday, Jan. 25, 2013, 4:40 p.m.

NEW YORK — The Standard & Poor's 500 index closed above 1,500 on Friday for the first time since the start of the Great Recession in 2007, lifted by strong earnings from Procter & Gamble and Starbucks.

The S&P 500 rose 8.14 points to 1,502.96. It was the eighth straight gain, the longest winning streak since November 2004.

The Dow Jones industrial average closed at 13,825.33, up 46 points. The Nasdaq composite gained 19.33 points to 3,149.71.

Procter & Gamble, world's largest consumer products maker, gained $2.83 to $73.25 after reporting that its quarterly income more than doubled. P&G also raised its profit forecast for its full fiscal year. Starbucks rose $2.24 to $56.81 after reporting a 13 percent increase in profits.

“Earnings are growing,” said Joe Tanious, a global market strategist at JPMorgan. “The bottom line is that corporate America is doing exceptionally well.”

Tanious expects corporate earnings to grow at about 5 percent over the “next year or two,” and stock valuations to rise. Currently, the S&P 500 is trading at an average price-to-earnings ratio of 14, below an average of 15.1 for the last decade, according to FactSet data.

Stocks have surged this month, with the S&P 500 advancing 5.4 percent. It jumped at the start of the year when lawmakers reached a last-minute deal to avoid the “fiscal cliff.” Stocks built on those gains on optimism that the housing market is recovering.

and the labor market is healing. The Dow Jones is up 5.5 percent on the year.

Deutsche Bank analysts raised their year-end target for the index to 1,600 from 1,575.

Companies will be able to maintain their earnings even if lawmakers in Washington decide to implement wide-ranging spending cuts to narrow the budget deficit, the analysts said in a note sent to clients late Thursday.

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.