TribLIVE

| Business


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

Finally, stocks back on track

By The Associated Press
Saturday, March 1, 2014, 12:01 a.m.
 

NEW YORK — After two months of trading, the stock market is back where it started.

The Standard & Poor's 500 index rose 4.3 percent in February, the biggest gain since October 2013, helped by strong corporate earnings and a Federal Reserve that seems to have Wall Street's back at every turn. But the rise in February must be taken in the context that investors spent the month making up the ground they lost in January.

“February looked a lot like January, just moving in the opposite direction,” said Scott Clemons, chief investment strategist with Brown Brothers Harriman Wealth Management.

Investors are also now staring at a stock market, while numbers-wise is basically where it was on Jan. 1, that is a lot more defensive than it was two months ago.

Utilities and health care stocks — two traditional “safe” places for investors because of their low volatility and higher-than-average dividends — are the biggest gainers so far this year. Utilities are up 5.7 percent in 2014 and health care is up 6.6 percent.

Investor caution was also evident in the bond market, which has done reasonably well in the last two months. The yield on the benchmark U.S. 10-year Treasury note has fallen from 2.97 percent to 2.65 percent in the last two months as investors returned to the relative safety of government debt. The Barclays U.S. Aggregate bond indexis up 1.6 percent this year.

“The sentiment is, ‘Bonds may not be as bad as I originally thought,' ” said Michael Fredericks, portfolio manager of Multi-Asset Income Fund at Blackrock.

 

 
 


Show commenting policy

Most-Read Business Headlines

  1. Visual search  still hampered  by image issues
  2. U-PARC houses companies ranging from innovative to traditional
  3. Deported migrants find home at call centers
  4. States clear way for startups to use crowdfunding
  5. Young adults drive home rental trend in Western Pennsylvania
  6. 2 top technology officers leave UPMC
  7. Gas drilling company withdraws application for forced pooling in Western Pennsylvania
  8. Students walk shop class path to excellence
  9. DQE Communication inks data deal with Iron Mountain
  10. Government approves compromise on Corbett’s alternative Medicaid plan
  11. Lower your cable bill by streaming shows
Subscribe today! Click here for our subscription offers.