Dow up for 10th straight day; S&P 500 nears record
The big 2013 rally continues. The Dow's winning streak is its longest since November 1996. The S&P 500 finishes 2 points below its 2007 closing high.
The Dow closed up 84 points to 14,539. The Standard & Poor's 500 Index ($INX) had its second-highest close ever at 1,563, just two points below its all-time closing high of 1,565.15. And the Nasdaq Composite Index ($COMPX) finished at 3,259, its highest level since November 7, 2000.
Many investors are waiting to see if the S&P 500 tops 1,565, its closing high on Oct. 9, 2007, and then what happens afterward. That new record looks likely to happen in the next few days. The index is up 131% from its March 9, 2009 bottom.
The Dow is up nearly 11% this year, with the S&P 500 up some 9.6%. For many bears, those are signals of a market that's getting too hot. Maybe not. On March 14, 2012, the S&P 500 was up 11% for the year. The Dow was up 8%.
The Nasdaq, meanwhile, is up 7.9% in 2013. But that's less than half the 16.7% gain for the year that the index enjoyed on March 14, 2012. Much of that appreciation, however, was due to the big price run-up that Apple (AAPL) saw.
For history fans, the 10-day streak is the longest since 10 sessions that ended on Nov. 15, 1996. That was just after then-Federal Reserve Chairman Allan Greenspan described the stock market was infected by "irrational exuberance."
What is true is the rally this year has been steady, with modest daily changes. The Dow's average daily change this year has been about 29 points, about 10 points higher than a year ago.
There are three more factors to consider.
- When the S&P 500 hit 1,516.15, it began to fade almost immediately, and the fade turned into a horrific rout in 2008. Many analysts worry that the major averages are getting ahead of themselves based on earnings growth, the economy and the uncertainty of politics in Washington. Those concerns are worth pondering.
- The Dow and S&P 500 are trading at nearly 10% above their 200-day moving averages. The relationship between the index and that moving average is a oft-watched measure of investor confidence. The differences for the indexes hasn't been so high in a year.
- The 14-day relative strength indexes for the Dow, S&P 500 and Nasdaq all moved above 70 on Thursday. The indexes measure a stock's momentum, and a reading above 70 is often a signal that a market is overbought and due for a pullback. It should not be a big pullback.
Hewlett-Packard (HPQ) was the Dow leader, up 61 cents to $21.93. It's up 54% this year. Chesapeake Energy (CHK) led the S&P 500, up $1.12 to $22.52. Sears Holdings (SHLD) was the best performer among Nasdaq-100 ($NDX) stocks up $1.48 to $52.49. The index was up 9 points to 2,807. It's up 5.5% on the year.
I would have been, but lost my job, and all my stock, and sold the rest to pay my bills.
I am still unemployed...
live high on the hog now it won't last... it will all come crashing down soon. I give it two to three years.
still can't get banks to pay interest of any kind. Gas prices won't come down. the government is milking every penny out of the poor. the middle class is going away slowly.
The DOW is only good for making more unfortunate 401K loosers and more Wall Street millionaires.
Thet steal from the poor working class that put their hard earned wages into 401k...when it crashes the investors survive off the profit since they cash out before the axe drops...
Total scam... Invest elsewhere my friends...
Well we Lost..."Market Dispatches" and now it looks like "Top Stocks" is going away by Title...
May be becoming "Investor Beat" by the looks of the return button...
I hope that is ALL, it is about ?....Investing, but time shall tell...?
This market has legs. But if you want to sell, I will be happy to buy your shares during the upcoming sell-off.
Run for the hills short sellers and go buy some gold at all-time highs. Idiots.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
The company is scrambling to protect its equities arm, which could face declining volume and revenue as competitors close the gap.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.