S&P clears 1,800; Dow tops 16,000
But U.S. stocks edged mostly lower on Monday, with the S&P 500 and Dow industrials at or near record highs.
By Kate Gibson
U.S. stocks edged mostly lower on Monday, with the S&P 500 ($INX) and Dow ($INDU) industrials at or near record highs, as Wall Street reconsidered initial gains after a measure of builder sentiment came in below expectations.
Underlying gains that took the Dow above 16,000 for the first time and the S&P 500 above 1,800 is ongoing optimistic about stimulus from the Federal Reserve.
"The Fed continues to be an investor's best friend, and should remain that way, until the Fed actually begins to scale back its bond-buy program. Most likely, this will not occur until the first quarter of 2014, at the earliest," Fred Dickson, chief investment strategist at Davidson Companies, wrote in emailed commentary.
The Dow Jones Industrial Average rose, clearing 16,000 for the first time. Boeing (BA) led blue-chip companies on the rise, after it received more than 250 orders for its revamped 777 jet at an airshow in Dubai.
The S&P 500 also surpassed a psychological hurdle, rising above 1,800 for the first time, with industrials and financials the best performing of its 10 industry groups.
"Although the stock market does not appear to have the typical 'bubble' characteristics of ultra-high valuation levels seen in 2000 and 2007 or the rapidly rising interest rates and slowing money supply conditions of those years, it does appear extended from a near-term technical perspective and ripe for a modest near-term pullback," Dickson noted.
The Nasdaq ($COMPX) erased its initial gain, after coming within half a dozen points of 4,000.
The CBOE Volatility Index (VIX), a gauge of investor uncertainty, climbed 2.4 percent to 12.48.
For every five shares on the decline, eight gained on the New York Stock Exchange, where 68 million shares traded as of 9:40 a.m. Eastern. Composite volume cleared 218 million.
The dollar fell against global counterparts and the yield on the 10-year Treasury note used in figuring mortgage rates and other consumer loans fell a basis point to 2.7 percent.
Crude-oil futures dipped 0.1 percent to $93.71 a barrel; gold futures fell 0.3 percent to $1,283.60 an ounce.
At a conference Monday in the United Arab Emirates, Boston Federal Reserve President Eric Rosengren told reporters capital ratios have improved in the United States, with bank lending on the rise to households and corporations.
Stocks in China climbed after the government vowed to ease its one-child policy and increase private investment as part of a package of economic reports.
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[BRIEFING.COM] The stock market finished an upbeat week on a mixed note. The S&P 500 added just over a point, holding its weekly gain at 1.0% while the Nasdaq lost 0.4%.
The major averages began the day on an upbeat note, but relinquished their opening gains during the first 90 minutes of action. The early sentiment was boosted by a better-than-expected nonfarm payrolls report for February (175K versus Briefing.com consensus 163K), but a closer look into the report suggested that ... More
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