S&P 500 index closes above 1,800 for 1st time
By The Associated Press
Published: Friday, Nov. 22, 2013, 5:27 p.m.
The stock market brushed past another milestone on Friday.
The Standard & Poor's 500 index closed above 1,800 for the first time, capping seven straight weeks of gains.
The broader index is on track for its best performance in 15 years as a combination of solid corporate earnings, a strengthening economy and easy-money policies from the Federal Reserve draw investors to stocks. Stocks also have gained because they offer an attractive alternative to bonds, where interest rates remain close to all-time lows.
“You can't really get better returns other than in the stock market,” said Peter Cardillo, chief market economist at Rockwell Global Capital. “It's been a quality run-up in stocks.”
The S&P 500 index rose 8.91 points, or 0.5 percent, to 1,804.76. The index has advanced 26.5 percent in 2013. If it finishes at that level, it would be its strongest year since a 26.7 percent gain in 1998.
The Dow Jones industrial average continued its upward march after finishing above 16,000 for the first time on Thursday. The index gained 54.78 points, or 0.3 percent, to 16,064.77.
The Nasdaq composite rose 22.49 points, or 0.6 percent, to 3,991.65.
Despite their big gains, stocks could continue to rise. The economy is forecast to keep recovering, and that helps companies increase their earnings. And while stock valuations have risen, they are still attractive compared with bonds.
However, investors will likely have to look harder to find winning stocks next year, said Paul Hogan, co-manager of the FAM Equity-Income Fund. “We've had the rising tide, but going forward, it's the stock pickers that will tend to do better.”
Still, there are grounds for caution.
Given the strong gains this year, stocks are no longer a bargain.
“I'm not pounding the table anymore, saying this is the cheapest U.S. equity market in decades,” said Andres Garcia-Amaya, a global market strategist at J.P. Morgan Funds.
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
- Coca-Cola CEO’s pay, bonus drop
- JPMorgan whistle-blower gets $64M for mortgage fraud tips
- Teach your engine well
- Car only as good as its tires
- Wake up and smell the bacon app
- Employers nationwide added 175K jobs despite harsh weather
- Samsung introduces free streaming radio service
- Cabbies protest ride startups
- Fraud charges stand for Facebook claimant
- Natural gas industry buoyed by advancing technology