Tuesday, October 21, 2014
FAIRFIELD-SUISUN, CALIFORNIA
99 CENTS

Late recovery gives S&P 500 another record close

By
From page B11 | June 20, 2014 |

Investors remained in a record-setting mood Thursday.

The Standard & Poor’s 500 index closed at an all-time high for the second time in two days and notched its fifth gain in five days.

The Dow Jones industrial average and Nasdaq composite ended mixed after drifting between small gains and losses for much of the day.

The three key stock indexes all opened higher, holding on to tiny gains in premarket trading as investors sized up the latest data on unemployment aid applications and an index of economic indicators.

The Labor Department reported that applications for unemployment benefits fell last week to 312,000, the lowest in more than six years. The Conference Board added to the good news, saying its index of leading indicators rose 0.5 percent in May from the previous month.

The market began to drift lower, however, as investors looked beyond the economic data and focused instead on a mixed bag of corporate earnings from companies such as Kroger, Rite Aid and Pier 1 Imports.

By midday, stocks veered into the red, where they remained until halfway through the final hour of trading, when a late push elevated the S&P 500 and Dow barely higher on the day.

“Right now we’re in a situation where they’re pretty boring markets, just a slow, easy grind,” said Chris Gaffney, a senior market strategist at EverBank Wealth Management.

The S&P 500 index rose 2.50 points, or 0.1 percent, to 1,959.48. That’s slightly above the prior day’s record close of 1,956.98. The last time the index closed at a record high was June 9th.

The Dow Jones industrial average added 14.84 points, or 0.1 percent, to 16,921.46. The Nasdaq composite slipped 3.51 points, or 0.1 percent, to 4,359.33.

The three indexes are all up for the year.

The string of record highs has the S&P 500 index running ahead of its 50-day moving average. That suggests it could be in for a pullback, said Jim Russell, senior equity strategist at U.S. Bank Wealth Management. Russell still expects the market to move higher in coming months.

“We think the environment is still favorable for equities to have an upward bias,” Russell said. “It’s still too early to put the bear suit on.”

Despite its upward bent, the market has been mostly registering small moves, reflecting a cautious mood on the part of many investors heading into summer, as well as lingering concern over the possible fallout from the crisis in Iraq and questions over the resiliency of the U.S. economy.

The U.S. economy shrank at an annual rate of 1 percent in the January-March quarter, the victim of a severe winter which slowed business activity in a number of areas. Many analysts anticipate growth rebounded strongly in the April-June quarter.

“We know the economy is showing signs of improvement, and we’ve seen that trajectory over the past two or three months,” said Russell. “To move the equity market to a higher level we need to see anecdotal evidence that company earnings are starting to increase.”

The market will get a sense of that next month, when the next round of corporate earnings begins. Until then, the next key market mover will likely be the June jobs report, due out the first week of July.

On Thursday, investors waded through a mixed bag of corporate news.

Kroger rose $2.39, or 5.1 percent, to $49.66 after the supermarket operator raised its earnings forecast for the year. American Apparel jumped 6.7 percent after the company’s board said it would fire the CEO. The stock rose 4 cents to close at 68 cents.

Other companies didn’t fare as well.

Rite Aid reported its fiscal first-quarter earnings sank 55 percent due to higher-than-expected drug costs and other expenses. The stock fell 26 cents, or 3.5 percent, to $7.18.

Pier 1 Imports tumbled 13.1 percent after the furniture retailer’s quarterly profit fell short of Wall Street expectations. The company also lowered its full-year forecast. The stock fell $2.40 to $15.86.

Investors also hammered the stock of luxury goods maker Coach after the company said it will shutter about 70 underperforming stores in a bid to regain ground lost to competitors. The stock fell $3.50, or 8.9 percent, to $35.69.

All told, six of the 10 sectors in the S&P 500 index rose, led by utilities. The sector is up 15.1 percent this year as investors have piled into stocks that pay high dividends. Technology stocks fell the most.

Bond prices fell, sending the yield on the 10-year Treasury note up to 2.63 percent from 2.59 percent late Wednesday.

 

The Associated Press

The Associated Press

LEAVE A COMMENT

Discussion | No comments

The Daily Republic does not necessarily condone the comments here, nor does it review every post. Read our full policy

.

Solano News

Crime key topic again at Fairfield candidates night

By Ryan McCarthy | From Page: A5 | Gallery

 
Pair testify in Laurel Creek shooting case

By Jess Sullivan | From Page:

 
Dixon corn maze breaks own world record

By Jess Sullivan | From Page: A5 | Gallery

PAL center seeks volunteers

By Jess Sullivan | From Page: A5

 
Police Department hosts employee recognition event

By Jess Sullivan | From Page: A5

.

US / World

Police say they might have spotted ambush suspect

By The Associated Press | From Page: B2

 
Fashion designer Oscar de la Renta dies at 82

By The Associated Press | From Page: B2 | Gallery

Yosemite proposes raising entrance, camping fees

By The Associated Press | From Page: B2

 
CDC releases revised Ebola gear guidelines

By The Associated Press | From Page: B2

Clinton: Midterm elections should motivate women

By The Associated Press | From Page: B2 | Gallery

 
Surfer fends off shark attack with fist, board

By The Associated Press | From Page: B2

WWII airman to be buried in Oakland

By The Associated Press | From Page: B2

 
Brown: California needs long-term vision on water

By The Associated Press | From Page: B2

Colorado proposes edible pot ban, then retreats

By The Associated Press | From Page: B2

 
Submarine hunt sends Cold War chill across Baltic

By The Associated Press | From Page: B2

Oscar Pistorius to finally learn his sentence

By The Associated Press | From Page: B2

 
Youths, tech workers duel over San Francisco field

By The Associated Press | From Page: B2

Suspect in Va. abduction charged in DC area rape

By The Associated Press | From Page: B2

 
Warming Earth heading for hottest year on record

By The Associated Press | From Page: B2

Lacking a plan, Abbas opts for rhetoric

By The Associated Press | From Page: B2 | Gallery

 
Police: Indiana suspect hints at more killings

By The Associated Press | From Page: B2 | Gallery

Turkey says it helps Kurdish fighters enter Syria

By The Associated Press | From Page: B2

 
Nigeria declared Ebola-free; ‘spectacular success’

By The Associated Press | From Page: B2 | Gallery

Urgent-care clinics ill-equipped to treat Ebola

By The Associated Press | From Page: B2

 
GOP governors don’t see ‘Obamacare’ going away

By The Associated Press | From Page: B2

British royal couples’ 2nd child due in April

By The Associated Press | From Page: B2

 
.

Opinion

Spering kept youth league going

By Letter to the Editor | From Page: A11

 
Day, Blankenchip good for respective cities

By Letter to the Editor | From Page: A11

‘Misleading’ mailer sent to residents

By Letter to the Editor | From Page: A11

 
.

Living

Community Calendar: Oct. 21, 2014

By Susan Hiland | From Page:

 
.

Entertainment

Yearwood, Santana to perform at World Series

By The Associated Press | From Page: B6

 
Standing ovation at Met Opera despite protest

By The Associated Press | From Page: B6 | Gallery

Still the Same: Bob Seger launching tour, album

By The Associated Press | From Page: B6 | Gallery

 
San Francisco radio stations ban hit song ‘Royals’

By The Associated Press | From Page: B6

Pitbull to host American Music Awards on Nov. 23

By The Associated Press | From Page: B6

 
‘Buffy the Vampire Slayer’ actor arrested in Idaho

By The Associated Press | From Page: B6

NBC’s Snyderman faces credibility issues

By The Associated Press | From Page: B6 | Gallery

 
Not so fast cordcutters – cable’s not going anywhere

By The Associated Press | From Page: B5 | Gallery

TVGrid Oct 21

By Daily Republic Syndicated Content | From Page: A11

 
.

Sports

Local Report: Armijo boys soccer team falls to Vintage

By Daily Republic staff | From Page: B1

 
Steelers rally past stunned Texans 30-23

By The Associated Press | From Page: B1

Bumgarner against Shields in World Series opener

By The Associated Press | From Page: B1 | Gallery

 
Raiders plagued by 3rd-down defensive woes

By The Associated Press | From Page: B1 | Gallery

Champion drag racer Raymond Beadle dies at 70

By The Associated Press | From Page: B1

 
Stiviano lawsuit against Shelly Sterling dismissed

By The Associated Press | From Page: B1

With TD mark in bag, Manning can set more records

By The Associated Press | From Page: B1 | Gallery

 
49ers lose center Daniel Kilgore, needs surgery

By The Associated Press | From Page:

Giants-Royals: A capsule look at World Series

By The Associated Press | From Page: B1

 
Belichick, Brady praise Manning on TD record

By The Associated Press | From Page: B1

Penn State board to meet on disputed Freeh Report

By The Associated Press | From Page: B1

 
McIlroy to skip 2 events to focus on lawsuit

By The Associated Press | From Page: B1

Column: Keselowski marches to his own beat

By The Associated Press | From Page: B1 | Gallery

 
Wanted: Cities interested in hosting 2024 Olympics

By The Associated Press | From Page: B1

Giants rely on core of 4 relievers

By The Associated Press | From Page: B1

 
Royals, fans bond over improbable postseason run

By The Associated Press | From Page: B1

Voynov suspended on domestic violence suspicion

By The Associated Press | From Page:

 
.

Business

Facebook sues law firms, claims fraud

By The Associated Press | From Page: B5

 
Apple reports record 39.3 million iPhone sales

By The Associated Press | From Page: B5

US regulator: Fannie, Freddie in deal with banks

By The Associated Press | From Page: B5

 
Sears plans to raise more cash via rights offering

By The Associated Press | From Page: B5

Survey: Pay raises rarer despite strong US hiring

By The Associated Press | From Page: B5 | Gallery

 
US agency warns car owners to get air bags fixed

By The Associated Press | From Page: B5

.

Obituaries

.

Comics

Pickles Oct 21

By Daily Republic Syndicated Content | From Page: B6

 
Bridge Oct 21

By Daily Republic Syndicated Content | From Page: B7

Sudoku Oct 21

By Daily Republic Syndicated Content | From Page: B7

 
Baby Blues Oct 21

By Daily Republic Syndicated Content | From Page: B6

Sally Forth Oct 21

By Daily Republic Syndicated Content | From Page: B6

 
Wizard of Id Oct 21

By Daily Republic Syndicated Content | From Page: B6

Dilbert Oct 21

By Daily Republic Syndicated Content | From Page: B6

 
B.C. Oct 21

By Daily Republic Syndicated Content | From Page: B6

Crossword Oct 21

By Daily Republic Syndicated Content | From Page: B7

 
Frank and Ernest Oct 21

By Daily Republic Syndicated Content | From Page: B6

Blondie Oct 21

By Daily Republic Syndicated Content | From Page: B6

 
Word Sleuth Oct 21

By Daily Republic Syndicated Content | From Page: B7

Garfield Oct 21

By Daily Republic Syndicated Content | From Page: B6

 
Get Fuzzy Oct 21

By Daily Republic Syndicated Content | From Page: B6

Baldo Oct 21

By Daily Republic Syndicated Content | From Page: B6

 
Rose is Rose Oct 21

By Daily Republic Syndicated Content | From Page: B6

Zits Oct 21

By Daily Republic Syndicated Content | From Page: B6

 
For Better or Worse Oct 21

By Daily Republic Syndicated Content | From Page: B6

Peanuts Oct 21

By Daily Republic Syndicated Content | From Page: B6

 
Cryptoquote Oct 21

By Daily Republic Syndicated Content | From Page: B7

Beetle Bailey Oct 21

By Daily Republic Syndicated Content | From Page: B6