Stocks break a losing streak
The Dow and S&P 500 move higher after 5 days of losses. Still, a strong open fades as worries about a government shutdown build. Bed Bath & Beyond jumps on strong earnings.
That was around 10 a.m. ET. Then the rally faded almost to no gain at all, but recovered a bit at the close. The Dow Jones industrials ($INDU) and the Standard & Poor's 500 Index ($INX) ended five-day losing streaks.
The shrinkage was due to worries about a government shutdown next week and a default on U.S. debt in mid-October. The recovery reflected cheer about a decline and a sense the economy may be stronger than thought.
President Obama says he won't be blackmailed to defund the Affordable Healthcare Act. House Speaker John Boehner says a shutdown is inevitable without more spending cuts.
The Dow closed up 55 points at 15,328, but the blue chips had been up 114 points at 10 a.m. ET. The S&P 500 saw an 11-point gain slide to 6 points to 1,699. The Nasdaq Composite Index ($COMPX) sported a strong gain -- 26 points to 3,787 -- only its second gain in the last five sessions.
The Nasdaq's pickup was mostly due to gains for a range of tech stocks including eBay (EBAY), Apple (AAPL), Microsoft (MSFT) and Amazon.com (AMZN). You could see the impact of those gains as well on the Nasdaq-100 Index ($NDX), which tracks the largest Nasdaq stocks. It was up 25 points to 3,234.
While it was nice to see gains, the stock market is looking toppy again. The Dow and S&P 500 hit all-time highs on Sept. 18 when the Federal Reserve punted on tapering its bond purchases. But both indexes are back to levels seen before the Fed decision.
The S&P 500 ended the day just below 1,700. Moving higher seems to be a challenge. And the longer the index stays under 1,700, the odds increase for some sort of sell-off.
The market opened strongly thanks to a strong second-quarter earnings report from Bed Bath & Beyond (BBBY) and that decline in jobless claims about 305,000. Bed Bath & Beyond hit a record $78.88 right after the open, then fell back to $77.54. But that was up $3.32.
Its 4.5% gain was fourth-best among Nasdaq-100 and S&P 500 stocks, behind Regeneron Pharmaceuticals (REGN), Yahoo (YHOO) and eBay.
Crude oil (-CL) in New York ended up 37 cents to $103.03 a barrel. Brent crude was up 86 cents to $109.18. Gold (-GC) fell $12.10 to $1,324.10 an ounce.
The 10-year Treasury yield rose to 2.643% from Wednesday's 2.614%.
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Let's Talk About Social Security: SPENDING CUTS
Every one has tried to convince any one who is willing to listen to them that the problem with the American Economy is Social Security and the drain is has on us as a Nation..
So, let's take a stroll down "Social Security Lane"
President Reagan started borrowing from our Social Security system in 1983 in order to avoid a "NATIONAL BANKRUPTCY".. Then, top income tax rates, were drastically reduced from 70% to 50% .
President Reagan borrowed 300 BILLION DOLLARS then, lowered the tax rate "AGAIN to 38.5%
President Bush Borrowed 350 BILLION DOLLARS from Social Security to avoid defaulting "NATIONAL BANKRUPTCY"
And President Clinton did the same as his predecessors and once again borrowed from Social Security..
We had a 2.6 TRILLION DOLLAR SURPLUS in Social Security- This would have covered the current level of benefits for the next 26 years.
In 2011 Congress approved a deal to cut Social Security taxes that employee contribute to a third or a 112 BILLION DOLLAR cut..
The Social Security System has been stolen from robbed or outright swindled by the Government for over 30 years.. The blame was placed upon the elderly to many to old wanting to much.
The truth of the matter is when they paid into the system they had enough money to cover the needs of those who would be eligible and the Y generation which was coming up the line would have time to cover the X generation who were less in number and would have drained more from the system..
BUT THERE WAS ONLY ONE PROBLEM EVERYONE FORGOT TO PAY BACK THE MONEY THEY TOOK FROM SOCIAL SECURITY.. just the interest alone would have added another 17 years to the existence of the system with no changes made..
They, as a group of working class citizens, put into place a Savings Account that was to have given them what they would have needed in extra income for generations.. FAIL SAFE BUT NOT FOOL SAFE
The federal budget deficit, which shrank as a percentage of GDP for the third year in a row in 2012, will fall again in 2013, if current laws remain the same. At an estimated $845 billion, the 2013 imbalance would be the first deficit in five years below $1 trillion; and at 5.3 percent of GDP, it would be only about half as large, relative to the size of the economy, as the deficit was in 2009. Nevertheless, if the laws that govern taxes and spending do not change, federal debt held by the public will reach 76 percent of GDP by the end of this fiscal year, the largest percentage since 1950.
With revenues expected to rise more rapidly than spending in the next few years under current law, the deficit is projected to dip as low as 2.4 percent of GDP by 2015. In later years, however, projected deficits rise steadily, reaching almost 4 percent of GDP in 2023. For the 2014–2023 period, deficits in CBO’s baseline projections total $7.0 trillion. With such deficits, federal debt would remain above 73 percent of GDP—far higher than the 39 percent average seen over the past four decades. (As recently as the end of 2007, federal debt equaled just 36 percent of GDP.) Moreover, debt would be increasing relative to the size of the economy in the second half of the decade.
Those projections are not CBO’s predictions of future outcomes. As specified in law, CBO’s baseline projections are constructed under the assumption that current laws generally remain unchanged, so that they can serve as a benchmark against which potential changes in law can be measured.
Federal revenues will increase by roughly 25 percent between 2013 and 2015 under current law, CBO projects. That increase is expected to result from a rise in income because of the growing economy, from policy changes that are scheduled to take effect during that period, and from policy changes that have already taken effect but whose full impact on revenues will not be felt until after this year (such as the recent increase in tax rates on income above certain thresholds).
As a result of those factors, revenues are projected to grow from 15.8 percent of GDP in 2012 to 19.1 percent of GDP in 2015—compared with an average of 17.9 percent of GDP over the past 40 years. Under current law, revenues will remain at roughly 19 percent of GDP from 2015 through 2023, CBO estimates.
So now we're being told that the stock market isn't for those over eighty years of age..
SOMEONE PLEASE TELL THAT TO WARREN..HE"LD LAUGH IN YOUR FACE
If Boehner really wants to balance the budget, why doesn't he start with all the bills he passed that sent spending out of whack in the first place.
Annual spending increases passed by Boehner during Bush years in billions, $8 TSA
$60 Medicare D
$60 Homeland Security
2014 projected deficit $538 billion Total Boehner spending $528 Billion per year
New 2014 deficit $10 billion It's so easy a Cave Man can do it.
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