Thursday, March 5, 2015
FAIRFIELD-SUISUN, CALIFORNIA
99 CENTS

Stocks end mixed; S&P closes near all-time high

World Markets Wall Street

FILE - This April 22, 2010, file photo, shows a Wall Street sign in front of the New York Stock Exchange. Global stock markets mostly inched higher Monday, June 30, 2014, as investors prepared for a busy week of economic news that will give new clues about the strength of the global recovery. Wall Street was set for a tepid session. (AP Photo/Mark Lennihan, File)

By
July 01, 2014 |

NEW YORK — The stock market closed out the second quarter regaining its upward momentum as investors were encouraged by an improving economy.

Stocks have resumed their upward trajectory after getting off to their worst start in five years in the first quarter. Investors sold stocks in January as they worried about the impact of an unusually harsh winter on the economy. The dangers of the intensifying conflict between Russia and the Ukraine also weighed on the markets.

By contrast, there were fewer worries in the second quarter.

As the weather improved, there was more encouraging news about hiring and manufacturing. Stocks were also propelled higher by a turnaround in some of the riskier parts of the market. Internet, biotechnology and small-company stocks all rebounded after dragging the market lower in March.

Company earnings, already at record levels, continued to grind higher. Even an escalating conflict in Iraq that pushed up oil prices in June wasn’t enough to stop stocks from rising.

“I’m not seeing anything that’s going to derail the overall upward climb of the market,” said Karyn Cavanaugh, senior market strategist with Voya Investment Management. “The economic backdrop is getting better, so companies will make even more money.”

The Standard & Poor’s 500 index fell 0.73 points on Monday, less than 0.1 percent, to 1,960.23, just two points from its record close of 1,962.87 set June 20. The index rose 4.7 percent in the quarter and closed at an all-time high on 16 occasions during in the period.

The Dow Jones industrial average fell 25.24 points, or 0.2 percent, to 16,826.60 and posted a gain of 2.4 percent in the quarter. The Nasdaq composite rose 10.25 points, or 0.2 percent, to 4,408.18, rising 5 percent in the quarter.

Stocks flickered between small gains and losses on Monday, keeping major indexes close to record levels, as investors assessed the latest data on housing.

Home builders rose following news that the number of Americans who signed contracts to buy homes shot up in May. The National Association of Realtors said its seasonally adjusted pending home sales index rose 6.1 percent to 103.9 last month. It was the sharpest month-over-month gain since April 2010.

Gains for home builders were led by D.R. Horton, which rose 75 cents, or 3.1 percent, to $24.58.

Utility stocks also did well. The sector rose 0.8 percent, making it the biggest gainer of the 10 industry sectors that make up the S&P 500 industry.

The group has climbed 16.4 percent this year as bond yields have fallen, forcing investors to look elsewhere for income. Power company stocks are regarded as a steady investment and they also pay rich dividends.

General Motor was among the day’s losers.

Trading in the automaker’s stock was briefly suspended in the afternoon after the company announced that it was recalling at least 7.6 million more vehicles dating back to 1997 to fix faulty ignition switches.

Perhaps the biggest surprise for investors in the second quarter was a strong rally in government bonds.

At the start of the year, most analysts and investors had expected bond yields to rise as the Federal Reserve gradually cut back on its economic stimulus and wound down its bond-buying program and the economy improved.

Instead, the opposite has happened. Bonds have rallied, pushing yields lower. Bonds have gained as inflation stayed low and as some investors remained skeptical about the long-term strength of the economy.

The yield on the 10-year Treasury note, which falls as bond prices rise, dropped to 2.52 percent on Monday from 2.54 percent on Friday. It had started the year at 3 percent.

“I’m surprised by the behavior of the bond market over the last six months,” said Joe Hieder, a regional managing principal at Rehmann Financial, a wealth adviser. “But with continued low interest rates, it is a benefit to everyone potentially except the retirees that are living on fixed income.”

Low interest rates should encourage companies to borrow and invest and help support the housing market.

Among other individual stocks making big moves on Monday:

— Pittsburgh-based PPG Industries announced plans to buy Mexico’s Consorcio Comex for $2.3 billion. The maker of paints wants to bolster its business in Mexico and Central America. PPG Industries rose $6.10, or 3 percent, to $210.15.

— MannKind, a bio pharmaceutical company, jumped 96 cents, or 9.6 percent, to $10.96 after the Food and Drug Administration on Friday approved Afrezza, a diabetes medication to help patients control their blood sugar levels during meals.

— Allergan fell after the company updated investors on the status of some of the key drugs that it is developing. The drug maker said the FDA had raised issues about a drug that is being developed as treatment of migraines in adults. The stock dropped $4.73, or 2.7 percent, to $169.20.

 

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

 
Show resilience in the face of adversity

By Mayrene Bates | From Page: A2

 
Real McCoy II Ferry set for maintenance

By Kevin W. Green | From Page: A3

 
Vacaville police slate annual awards ceremony

By Kevin W. Green | From Page: A3

Limited damage to apartment from carport fire

By Kevin W. Green | From Page: A3 | Gallery

 
Students sample industry choices during school career fair

By Glen Faison | From Page: A3 | Gallery

 
Vallejo police arrest 4 in connection with 3 killings

By Kevin W. Green | From Page: A4

 
National Red Cross Month celebrates heroes

By Susan Hiland | From Page: A4

Il Fiorello schedules citrus class

By Susan Hiland | From Page: A4, 1 Comment

 
Jury convicts ex-con who served as own lawyer

By Jess Sullivan | From Page: A4

Red Carpet Gala to benefit theater foundation

By Amy Maginnis-Honey | From Page: A4

 
Pet remembrance event set in Vallejo

By Amy Maginnis-Honey | From Page: A4

 
Friday concert benefits Families Helping Families

By Amy Maginnis-Honey | From Page: A4

 
Suisun City police log: Tuesday, March 3, 2015

By Susan Hiland | From Page: A10

Fairfield police log: Tuesday, March 3, 2015

By Susan Hiland | From Page: A10

 
.

US / World

 
Justices sharply divided over health care law subsidies

By The Associated Press | From Page: A1

 
Second Los Angeles hospital reports ‘superbug’ infections

By The Associated Press | From Page: A4

 
California lawmaker pushes child care worker vaccinations

By The Associated Press | From Page: A4

Children in Southern California breathing easier, study says

By The Associated Press | From Page: A4 | Gallery

 
Failures by 3 governments preceded homeless man’s death

By The Associated Press | From Page: A4, 1 Comment | Gallery

 
Obama signs Homeland Security funding bill into law

By The Associated Press | From Page: A5, 1 Comment

House panel issues subpoena for Clinton’s personal emails

By The Associated Press | From Page: A5

 
 
A defiant Alabama regains ground against gay marriage

By The Associated Press | From Page: A5

How much sugar is in that? 7 foods with added sugar

By The Associated Press | From Page: A5 | Gallery

 
Microsoft co-founder says he found sunken Japan WWII warship

By The Associated Press | From Page: A6

 
Coal mine blast kills at least 24 in war-torn east Ukraine

By The Associated Press | From Page: A6 | Gallery

.

Living

Today in History: March 5, 2015

By The Associated Press | From Page: A2

 
Community Calendar: March 5, 2015

By Susan Hiland | From Page: A2

Horoscopes: March 5, 2015

By Holiday Mathis | From Page: A9

 
I can’t tell if I still want to be married, or just don’t want to be alone

By Kathy Mitchell and Marcy Sugar | From Page: A9

.

Entertainment

‘Guardians of the Galaxy’ tops MTV Movie Awards nominations

By The Associated Press | From Page: B4

 
Glen Campbell children fighting wife’s control of affairs

By The Associated Press | From Page: B4 | Gallery

DiCaprio partners with Netflix for series of documentaries

By The Associated Press | From Page: B4

 
.

Sports

 
Posey has 2-run double in Giants’ 9-2 loss to A’s

By The Associated Press | From Page: B1

 
Local report: Vanden softball slips by Rodriguez with late run

By Daily Republic staff | From Page: B1

Curry shoots Warriors to 102-93 victory over Bucks

By The Associated Press | From Page: B1

 
NCAA reports big jump in home runs with new flat-seam ball

By The Associated Press | From Page: B2

MLS, players agree in principle to 5-year deal

By The Associated Press | From Page: B2

 
Prosecutors can’t bring up Florida shooting in ex-NFLer case

By The Associated Press | From Page: B2

Vikings agree to trade Cassel to Bills

By The Associated Press | From Page: B2

 
Scott opens a season of change at Doral

By The Associated Press | From Page: B2

‘It WAS him': Defense admits Tsarnaev bombed Boston Marathon

By The Associated Press | From Page: B2

 
With Peterson’s status in question, Vikings pay a visit

By The Associated Press | From Page: B2

NFL stadium supporters in LA suburb file ballot paperwork

By The Associated Press | From Page: B2

 
Alex Johnson, AL batting champ in 1970, dies at age 72

By The Associated Press | From Page: B2

Goodell: NFL responsible for Super Bowl seating problems

By The Associated Press | From Page: B2

 
Former player Nate Jackson calls for NFL to allow marijuana

By The Associated Press | From Page: B2

Phoenix to install tire barriers before NASCAR visit

By The Associated Press | From Page: B2

 
Pirelli sticks with same tire choices for first 4 F1 races

By The Associated Press | From Page: B2

AP Source: Peyton Manning returning for 18th NFL season

By The Associated Press | From Page: B2

 
.

Business

.

Obituaries

Aaron D. Malave

By Nancy Green | From Page: A4, 1 Comment

 
Thelma A. Roche

By Nancy Green | From Page: A4

Cesar Luis Garcia-Regalado

By Susan Hiland | From Page: A4

 
Rodolfo Landabora Porquez

By Susan Hiland | From Page: A4, 1 Comment

.

Comics

Get Fuzzy

By Daily Republic Syndicated Content | From Page: A8

 
Sally Forth

By Daily Republic Syndicated Content | From Page: A8

Peanuts

By Daily Republic Syndicated Content | From Page: A8

 
Pickles

By Daily Republic Syndicated Content | From Page: A8

Baldo

By Daily Republic Syndicated Content | From Page: A8

 
Dilbert

By Daily Republic Syndicated Content | From Page: A8

Baby Blues

By Daily Republic Syndicated Content | From Page: A8

 
Beetle Bailey

By Daily Republic Syndicated Content | From Page: A8

Frank and Ernest

By Daily Republic Syndicated Content | From Page: A8

 
B.C.

By Daily Republic Syndicated Content | From Page: A8

Garfield

By Daily Republic Syndicated Content | From Page: A8

 
Rose is Rose

By Daily Republic Syndicated Content | From Page: A8

For Better or Worse

By Daily Republic Syndicated Content | From Page: A8

 
Zits

By Daily Republic Syndicated Content | From Page: A8

Blondie

By Daily Republic Syndicated Content | From Page: A8

 
Wizard of Id

By Daily Republic Syndicated Content | From Page: A8

Word Sleuth

By Daily Republic Syndicated Content | From Page: A9

 
Sudoku

By Daily Republic Syndicated Content | From Page: A9

Cryptoquote

By Daily Republic Syndicated Content | From Page: A9

 
Crossword

By Daily Republic Syndicated Content | From Page: A9

Bridge

By Daily Republic Syndicated Content | From Page: A9