Dow, S&P 500 finish at 5-year highs

The Dow gains 54 as the Bernanke rally continues, despite a downgrade of US debt and profit-taking. Crude oil briefly tops $100. Apple hits new highs. UnitedHealth, not Apple, will replace Kraft in the Dow.

By Charley Blaine Sep 14, 2012 12:52PM
Charley BlaineUpdated: 7:40 p.m. ET

Stocks took off at the open today and finished at fresh multiyear highs, despite seeing gains trimmed by a downgrade of U.S. debt and a big bout of profit-taking.

The Dow Jones industrials ($INDU) finished at levels last seen in December 2007. The blue chips had been up as many as 113 points at 10 a.m. ET but lost a bit more than half the gain after the downgrade to AA- from AA by Egan-Jones, a smaller credit-rating agency that tends to act before others. Another weight on stocks may have come when crude oil (-CL) in New York briefly topped $100 a barrel, due in part to Middle Eastern turmoil.

The rally was a quieter version of Thursday's big surge, set off by the Federal Reserve's decision to launch a new open-ended economic stimulus program. The Fed expects to buy $40 billion a month in mortgage-backed securities until it sees a meaningful improvement in the nation's job market. Bill Gross, the legendary bond-fund manager, suggested the Fed wants the unemployment rate to drop to 7% from the current 8.1%.

Apple (AAPL) hit a new intraday high of $696.98 on the momentum from the introduction of its new iPhone. The shares closed at $691.28, up $8.30, a record close. AT&T (T) and Verizon Communications (VZ) were lower after shares of both were downgraded -- because of the subsidies they will pay to Apple to get the newest iPhone. Home Depot (HD) closed up $1.16 to $59.46, a 12-year high, after announcing it was shutting down its last seven big-box stores in China but will retain an online presence and maintain some specialty stores.

The Dow closed up 54 points to 13,593, its best close since finishing at 13,727 on Dec. 10, 2007. The index had reached as high as 13,653. The Standard & Poor's 500 Index ($INX) gained 6 points to 1,466, its best close since Dec. 31, 2007. The index peaked at 1,475. The Nasdaq Composite Index ($COMPX) was up 28 points to 3,184, its highest close since Nov. 13, 2000. The gains for the major averages were their fourth in a row.

Article continues below.
The Nasdaq-100 Index ($NDX), heavily influenced by Apple, was up 24 points to 2,855. The index had reached as high as 2,865. The Russell 2000 Index ($RUT.X) nearly hit a new intraday high before finishing at 864.60.

Even if the market pulled back from early highs, it has become quite vulnerable to a pullback, and that should surprise no one. Stocks have risen sharply since June. The Dow is up 12% since June 4, with the S&P 500 up 14.6% and the Nasdaq up 15.9%.

Plus, all three indexes look overbought. Their relative strength indexes are all above 70; a reading that high suggests a security or index is overbought.

The Dow was up 2.2% for the week, with the S&P 500 up 1.9% and the Nasdaq up 1.5%. For the year, the Dow is up 11.3%, with the S&P 500 up 16.6% and the Nasdaq up 22.2%.
Markets for the week



9/14/2012

9/7/2012

% chg.

YTD chg.
Dow Industrials

13,593.37

13,306.64

2.15%

11.26%
S&P 500

1,465.77

1,437.92

1.94%

16.55%
Nasdaq 

3,183.95

3,136.42

1.52%

22.22%
Russell 2000

864.70

842.27

2.66%

16.71%
Crude oil 

$99.00

$96.42

2.68%

0.17%
(per barrel)

0.00

0.00

0.00%

0.00%
U.S. Dollar Index 

78.84

80.23

-1.74%

-2.09%
10-yr. Treasury

1.87%

1.66%

12.58%

-0.05%
Gold

$1,772.70

1,740.50

1.85%

13.14%

Crude oil and gold move up
Crude oil in New York was up 58 cents to $98.89 a barrel after reaching as high as $100.42. Crude hasn't closed above $100 since May 3. Brent crude, the North Sea benchmark oil, was up 78 cents to $116.66 a barrel.

The national average retail price of gasoline was $3.871, according to according to AAA's Daily Fuel Gauge Report, up from Thursday's $3.869 and up 16% this quarter.

Gold (-GC) settled up 60 cents to $1,772.70 an ounce and was up 1.9% for the week. Silver (-SI) slipped 12.2 cents to $34.66 an ounce. It gained 2.9% on the week. Copper added 12.25 cents to $3.8325 a pound. It rose 5.1% for the week -- and was a direct beneficiary of the Fed decision.

The 10-year Treasury yield, a big influence on mortgage rates, hit 1.878%, up from Thursday's 1.756%. The 30-year Treasury yield moved over 3% for the first time since May 11.

Energy prices -- New York close (updated)



Fri.

Thur.

Month chg.

YTD chg.
Crude oil (-CL)

$99.00

$98.31

2.62%

0.17%
(per barrel)











Heating oil (-HO)

$3.2395

$3.2113

1.86%

11.16%
(per gallon)











Natural gas (-NG)

$2.9430

$3.0370

5.14%

-1.54%
(per mil. BTU)











Unleaded gasoline (-RB)

$3.0156

$2.9622

1.44%

13.48%
(per gallon)











Brent crude 

$116.66

$115.88

1.82%

8.64%
(per barrel)











Retail gasoline

$3.8710

$3.8690

1.10%

18.16%
(per gallon; AAA)












Housing, metals and energy stocks lead the market
Housing, steel, copper and gold and energy stocks were the market leaders.

Ryland (RYL) was up $1.70 to $31.52. It hit a 52-week high of $31.55. Alcoa (AA) rose 21 cents to $9.84. Freeport-McMoRan Copper & Gold (FCX) was up 85 cents to $42.64. Newmont Mining (NEM) rose $1.75 to $57.20.

Caterpillar (CAT), up $2.49 to $93.17, was the top performer among the 30 Dow stocks.

UnitedHealth will join the Dow
UnitedHealth Group (UNH) will replace Kraft Foods (KFT) in the Dow Jones Industrial Average after the close on Sept. 21, S&P Dow Jones Indexes announced this morning. Kraft is spinning off its North American grocery business.

The change is the Dow's first since June 2009 when General Motors (GM) and Citigroup (C) were replaced by Cisco Systems (CSCO) and Travelers Companies (TRV).

UnitedHealth jumped to as high as $55.27 but fell back to $54.25, up 36 cents. Kraft was off 20 cents to $39.93.

There had been speculation that Apple might go into the Dow, but that would have required a huge stock split, possibly as big as 10-for-1. That's because the Dow is price-weighted. That means the higher the stock price, the more influence a stock has on the index.

IBM, the priciest Dow stock, was up 45 cents to $206.81.

Higher fuel prices boost retail sales
U.S. retail sales grew 0.9% in August, the most in six months, boosted by demand for autos and higher gasoline prices, as well as back-to-school sales. Economists had expected a 0.7%.

Industrial production fell 1.2% in August, its biggest monthly percentage drop in more than three years, in part because of Hurricane Isaac but also because of a big drop in auto production.

The University of Michigan-Thomson Reuters consumer-sentiment index rose to 79.2 in a first reading this month, the highest level since May. Economists had expected a decline to 73.5 from the final August reading of 74.3.

Next week: Housing starts, existing-home sales, Oracle and FedEx earnings
The economy will exert the most influence on markets next week.

The Empire Manufacturing Index from the New York Federal Reserve Bank on Monday and the Philadelphia Fed Index from the Philly Fed on Thursday will offer sketches of manufacturing health.

The Commerce Department will report on housing starts and building permits for August on Wednesday. The National Association of Realtors will weigh in with existing-home sales for August on Thursday.

Friday brings The Conference Board's index of leading economic indicators.

Watch to see how the energy markets react both to the Fed's stimulus move and to the Middle East turmoil.

The big earnings reports will be FedEx (FDX) on Tuesday and Oracle (ORCL) after Thursday's close. FedEx has already cut guidance because of weakness in Asian business.

Also reporting:

Wednesday: Adobe Systems (ADBE), General Mills (GIS), and office-furniture makers Steelcase (SCS) and Herman Miller (MLHR).

Thursday: Carmax (KMX), ConAgra Foods (CAG), RiteAid (RAD) and Tibco Software (TIBX).

Short hits from the markets -- New York close



Fri.

Thur.

Month chg.

YTD chg.
Treasury yields











13-week Treasury bill

0.1000%

0.100%

11.11%

900.00%
5-year Treasury note 

0.715%

0.654%

19.97%

-13.86%
10-year Treasury note

1.870%

1.756%

19.72%

-0.05%
30-year Treasury bond

3.088%

2.967%

15.05%

6.89%
Currencies











U.S. Dollar Index

78.841

79.237

-2.92%

-2.09%
British pound

1.6231

1.6158

2.16%

4.46%
(in U.S. $)

 








U.S. $ in pounds

£0.616

£0.619

-2.11%

-4.27%
Euro in dollars

$1.31

$1.30

4.36%

1.46%
(in U.S. $)

 








U.S. $ in euros

€ 0.761

€ 0.770

-4.18%

-1.44%
U.S. $ in yen 

78.37

77.50

-0.16%

1.65%
U.S. $ in Chinese

6.34

6.33

-0.39%

0.20%
yuan











Canada dollar

$1.034

$1.033

1.90%

5.36%
(in U.S. $)

 








U.S. dollar 

$0.968

$0.968

-1.87%

-5.08%
(in Canadian $)

 








Commodities

 

 

 

 
Gold (-GC)

$1,772.70

$1,772.10

5.04%

13.14%
(per troy ounce)

 








Copper (-HG)

$3.833

$3.710

10.86%

11.54%
(per pound)

 








Silver (-SI)

$34.6560

$34.7780

10.22%

24.15%
(per troy ounce)

 








Wheat (-ZW)

$9.2425

$9.0200

3.91%

41.59%
(per bushel)

 








Corn (-ZC)

$7.8200

$7.7375

-2.22%

20.96%
(per bushel)

 








Cotton 

$0.7590

0.7353

-1.76%

-17.21%
(per pound)

 








Coffee

$1.8110

1.7885

9.92%

-21.14%
(per pound)

 








Crude oil (-CL)

$99.00

$98.31

2.62%

0.17%
(per barrel)










 
327Comments
Sep 14, 2012 3:12PM
avatar

Folks!!  We are now way behind in Nuclear Power Plant construction.

 

All you tree huggers out there enjoy all the extra Co2 being pumped into the atmosphere because all we are building now is petroleum based power stations.

Sep 14, 2012 3:12PM
avatar
What I think:
Yes Obama has only increased Federal Spending,,,His budgets, 1.4% the lowest in 60 years....Where have you been.....Google it...-----
 
 
Sep 14, 2012 3:08PM
avatar

Classic Lady

 

A good friend of mine is high up the ladder at Entergy. They had gotten the go ahead to build another Nuclear reactor at Grand Gulf Power Station in Port Gibson, MS.

They asked GE to quote the main components for the reactor building. When they got the price they could not believe the price. The cancelled the project last month.

WHY you ASK!!  GE said they have not (as we all know) built a Nuclear Containment Structure in 28 years. They would have to completely start from scratch and retool to build a new Nuclear Power Core.

All the old tooling is gone or out of date.

Bottom Line No new Nuclear Power Plants in the US unless they can tool up to build at least 6 or so to off set the start up cost.

Sep 14, 2012 3:05PM
avatar

<<<Can you tell me what has got worse since obama has been in office>>>

‎2008 66.2 66.0 66.1 65.9 66.1 66.1 66.1 66.1 65.9 66.0 65.8 65.8
2009 65.7 65.8 65.6 65.6 65.7 65.7 65.5 65.4 65.1 65.0 65.0 64.6
2010 64.8 64.9 64.9 65.1 64.9 64.6 64.6 64.7 64.6 64.4 64.5 64.3
2011 64.2 64.2 64.2 64.2 64.2 64.1 64.0 64.1 64.1 64.1 64.0 64.0
2012 63.7 63.9 63.8 63.6 63.8 63.8 63.7 63.5
Labor participation rate now stands at an all time low since the administration took office, and all the media tells us Americans are getting back to work. Lies on top of lies!!

Falling value of dollar US dollar index shows Jan 19, 2009 85.38, today 78.8

Over 1Billion dollars added to national debt every day

16 million more seniors slipped below the poverty level.

Just a few things. I'm sure it's all that dope Bush's fault, Right?

 

Sep 14, 2012 3:05PM
avatar

In 2010 when the Tea Party and Republicans took over Congress, Sen. Mitch McConnell announced that the priority of the Republicans was to make Obama a one term president. Their non-record since:

 

Tax on companies that ship job overseas - BLOCKED

Political Ad Disclosure Bill - BLOCKED 2x

Small Business Jobs Act - BLOCKED 2x

The DREAM Act - BLOCKED

Repeal of Don't Ask, Don't Tell - BLOCKED NUMEROUS TIMES

Anti-Rape Amendment - BLOCKED

Benefits for Homeless Veterans - BLOCKED

AFFORDABLE HEALTH CARE FOR AMERICANS - VOTED 33x TO APPPEAL

HEALTH CARE FOR 9/11 RESPONDERS - BLOCKED

THE JOBS BILL - BLOCKED

WALL STREET REFORM - BLOCKED

AMERICAN RECOVERY AND REINVESTMENT ACT - attempted BLOCK

OIL SPILL LIABILITY - BLOCKED

Immigration Reform - BLOCKED

Unemployment extension bill HR-4213 - BLOCKED

FAIR PAY ACT OF 2009 - BLOCKED & DEFEATED

 

On November 6th the majority of Americans will be voting NO to the Party of NO!

 

Barrack Obama in 2012!

 

Chris Van Hollen in 2016 & 2020!

 

God bless America!

Sep 14, 2012 3:04PM
avatar

Anyone watch the Republican convention? I know you noticed the lies but did you notice not one word about our military that is in harms way.

 

Yes rest assured those in the arm forces the republicans have you on they're harts & mind.

 

 

Sep 14, 2012 3:00PM
avatar

"No one can say my plan is going to raise taxes on middle-income people, because principle number one is (to) keep the burden down on middle-income taxpayers," Romney told host George Stephanopoulos.

 

"Is $100,000 middle income?" Stephanopoulos asked.

 

"No, middle income is $200,000 to $250,000 and less," Romney responded.

 

His campaign later clarified that Romney was referencing household income, not individual income.

 

The Census Bureau reported this week that the median household income — the midpoint for the nation — is just over $50,000.

 

ROMNEY AND THE GOP ARE OUT OF TOUCH AND CLUELESS!

 

Barack Obama in 2012!

 

Chris Van Hollen in 2016 & 2020!

 

God bless America!

Sep 14, 2012 3:00PM
avatar
"ELECTRIC CARS NEED POWER COAL PLANTS ARE BEING CLOSED BY THE  E P A NUKE PLANTS CANNOT BE BUILT FAST ENOUGH VOLTS COST ABOUT $60,000.00 ELECTRIC RATES ARE UP  THE CHEVY VOLT  IS HISTORY,,GONE ,"

Where do you get this crap from? I guess we'll have to scrap all that nano-tech solar advancement technology right? Your Flat Panel TV was $100,000 once and didn't last two years. We are moving ahead and as far as I know, no new nuke plants are happening. You are pretty much a liar.
Sep 14, 2012 2:59PM
avatar

Classic:

THE MIDDLE EAST IS BURNING ON OBAMA'S WEAKNESS---------

 

Yes and the middle east was so stable before Obama, what a tool you are. 


Sep 14, 2012 2:46PM
avatar
Repulbicans maybe you should stop making fun of electric cars and hybrids 

Hurts when gas goes up doesn't it lol


Sep 14, 2012 2:46PM
avatar
Hillary is saying............buck up................LOL what a fake!!!! Libya is an Obama failure!!!! Obama calls for you to give up even more..........!! I bet you will NEVER hear him say......."we should have stayed home and protected America" or "I'm sorry for what I have done to America"...! He will never admit it!!!
Sep 14, 2012 2:46PM
avatar
I hope Barry is re-elected so he can blame the clown who was in charge the previous four years for all of our problems. Oops I forgot that was Barry.
Sep 14, 2012 2:43PM
avatar
Enough with the pessimism .. is America full of whiners???  Blame Bush, Obama, Romney, Bernanke .... don't blame "me.' (the whiner)
Sep 14, 2012 2:41PM
avatar
Romney has flip flopped on every issue from abortion to Health Care, so He freely admitted every thing He has done was wrong, not the kind of solid leadership America needs.
Sep 14, 2012 2:41PM
avatar
If the dollar is de-valued enough strong exports could create thousands of new jobs....... of course it will be a 3rd world country so good times
Sep 14, 2012 2:39PM
avatar
Wow print more money to give to other countries. Oil prices surge like the American people just received a check in the mail. All I see is more rising gas prices from surging oil prices. Now how does this help us?
Sep 14, 2012 2:35PM
avatar
I hope someone fixes the statement about Home Depot in this article. It implies Home Depot only has 7 stores, and is closing them. They left out "in China". That's kind of critical to the accuracy of the article.
Sep 14, 2012 2:35PM
avatar
This wonderful "Arab Spring"  that Mr. Obama wished for has turned into "the American Fall!"
Sep 14, 2012 2:34PM
avatar
Fed buys crippled mortgages from their inbred cousins at the mega banks and wall street is euphoric - go figure.
Sep 14, 2012 2:33PM
avatar
Republican logic question of the day!!!!

If we had 8 years of lowering taxes on the rich and cutting regulations and that crashed the economy completely 

How would more of this fix the economy??????

I can't wait for your response......should be a good laugh
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