Stocks rise for 3rd consecutive week
By The Associated Press
Published: 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
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.
- Investors put squeeze on prospective homeowners’ American dreams
- How can I delete my search history on Facebook?
- Employers say friends can ease work stress
- Big oil pushes limits
- Pennsylvania, other states considering bids to host Boeing 777X production
- Airline merger reshapes industry’s landscape
- Workplaces reach out to vets
- Consol cuts office workers after Murray deal
- American Eagle Outfitters’ quarterly profit down 68 percent
- Unemployment rate falls as employers add 203,000 jobs nationwide
- PNC to pay $81M to Freddie Mac to resolve problem mortgages