TribLIVE

| Business


 
Larger text Larger text Smaller text Smaller text | Order Photo Reprints

Stocks rise for 3rd consecutive week

On the Grid

From the shale fields to the cooling towers, Trib Total Media covers the energy industry in Western Pennsylvania and beyond. For the latest news and views on gas, coal, electricity and more, check out On the Grid today.

By The Associated Press
Saturday, May 11, 2013, 12:01 a.m.
 

NEW YORK — Small was beautiful this week.

The Dow Jones industrial average closed above 15,000 for the first time on Tuesday, then held above that milestone for the next three days.

But an index of small-company stocks has been putting the blue-chip gauge to shame. On Friday, the Russell 2000 closed the week up 2.2 percent, more than double the Dow's gain.

Investors are in love with small stocks because they stand a greater chance of surging than large, global companies do if the U.S. economy continues to fare better than Europe.

“GDP growth was 2.5 percent in the first quarter — not spectacular, but better than Europe,” said Joseph Tanious, global market strategist of JPMorgan Funds. “Europe is sucking wind.”

On Friday, the Dow, an index of 30 large-company stocks including global giants like IBM and Caterpillar, rose 35.87 points to close at 15,118.49 after flitting between gains and losses most of the day.

The Dow's meager gain of 0.2 percent was trumped by the 0.9 percent advance in the Russell 2000. The small-company index rose 8.90 points to 975.16. Both indexes, as well as the Standard & Poor's 500, closed at record highs. All three rose for a third straight week.

The sharp increase in small-company stocks is a sign that investors are more willing to take on risk. Small stocks can offer investors greater returns, but they are more volatile than large stocks.

Dow stocks were held back by falling commodity prices. Exxon Mobil, Caterpillar and Alcoa — Dow members whose fortunes are tied to the prices of crude oil and other basic materials — closed down 1 percent or more.

 

 
 


Show commenting policy

Most-Read Business Headlines

  1. Energy sector adjusts to global oil plummet
  2. ExOne Co. moves solidify authority under CEO
  3. 8 Western Pennsylvania hospitals penalized over infections
  4. Real estate union: Howard Hanna buys Langholz Wilson Ellis
  5. ‘Staff Pick’ is golden ticket on Kickstarter
  6. Nonprofit hospitals in Western Pa. feel pain in finances despite Affordable Care Act
  7. Kim Komando: Can you get a virus on your smartphone?
  8. Beacons track shoppers’ smartphones amid retailers’ aisles
  9. Agriculture prospects envisioned in Cuba
  10. Treasury turns profit as it exits GM bailout
  11. Drought opens Texas ranchers’ eyes to income options
Subscribe today! Click here for our subscription offers.