Sunday, March 10, 2013

Dow sets new records for 4th straight day

U.S.tyre equipments stocks continued to rise on Friday to end the week on a strong note, sending the Dow Jones Industrial Average to refresh all-time intraday highs and closing highs for four days in a row, boosted by upbeat U.S. jobs data. 

The blue-chip Dow was up 67.58 points, or 0.47 percent, to 14, 397.07. The broader Standard & Poor's 500-stock Index rose 6.92 points, or 0.45 percent, to 1,551.18. The tech-heavy Nasdaq Composite Index gained 12.28 points, or 0.38 percent,Auto Accessories wholesalers to 3,244.37. 

The Dow and S&P 500 rose for a sixth consecutive session, both gaining 2.2 percent in this week. The Nasdaq finished the week up 2.4 percent. 

"The Dow has gone up so quickly and so dramatically this year because the world economy is improving and investors want to be part of the improvement. Money coming out of other assets classes and going into the equity fueled to the rise," Benedict P. Willis III,Antique bath fixtures managing director in Albert Fried & Company, LLC, told Xinhua in a telephone interview on Friday. 

"I think the catalyst for this market's quick rise was Ben Bernanke's testimony last week. I believe the market translated his comments to mean that the Fed will not curtail its easy money policies any time soon. Positive economic data, in particular today's jobs report, has further boosted the market making this rally more believable in people's minds," Gregory J. Keating, managing director of New York-based James E. Coffey Securities Inc, told Xinhua Friday. 

The main stock indices opened higher,with the Dow hitting 14, 413 points soon, amid generally rising equity markets in Asia and Europe, as Japan upwardly revised its GDP data for the fourth quarter of 2012 and Chinese exports in February grew more than expected. 

The U.S. economy added 236,000 new nonfarm payroll jobs in February, far more than market expectations, according to the Labor Department. The figure unexpectedly brought the February unemployment rate down to 7.7 percent, the lowest level in over four years. 

"This morning's report shows a resilient economy continuing to recover," Seth D. Harris,Vintage tubs acting secretary of the Labor Department, said in a statement. "The economy is poised for even more significant growth, but Congress should not hold it back," he added. 

Wholesale inventories in January rose 1.2 percent from the revised December level, the biggest gain in over a year, the U.S. Commerce Department announced on Friday. Meanwhile, sales were down 0.8 percent compared with the prior month. 

Financial shares had mixed performance after results of bank stress tests announced by the U.S. Federal Reserve after Thursday' s closing bell showed that America's largest bank holding companies continued to improve their ability to withstand an extremely adverse hypothetical economic scenario. 

Citigroup rallied 3.73 percent to 46.68 U.prepregS. dollars after the banking giant showed a higher-than-expected capital ratio in the bank stress tests. 

McDonald's shares also gained 1.67 percent to 98.71 dollars after the fast food chain posted before the opening bell its global February sales, which dropped less than expected. 

Willis added: "I think the stock market is a little over extended after so fast a rally. The market needs a small correction. I don't foresee a crash happening. There is no reason for a crash. Stocks are fairly priced." 

However, in Keating's opinion, the market can continue its run up. "I believe there is still a lot of money on the sidelines and as I mentioned with this rally gaining more credibility, you will see a further rotation into stock and ETF funds."

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