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.

By Charley Blaine Mar 14, 2013 5:19PM
© Adam Gault, OJO Images, Getty ImagesStocks finished higher again on Thursday, with the Dow Jones Industrial Average ($INDU) rising for a 10th straight day, something that hasn't occurred since November 1996.

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.
Lastly, if General Electric (GE) falls, the Dow often follows. GE fell Tuesday and Wednesday but moved up 20 cents to $23.69 on Thursday. GE is up 12.9% on the year.

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.
27Comments
Mar 14, 2013 9:16PM
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The government cuts back just a tiny bit and instead of the sky falling we see substantial gains in the economy. Hey, here's an idea, let's cut government back some more.
Mar 14, 2013 9:18PM
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I would have been, but lost my job, and all my stock, and sold the rest to pay my bills.

Thanks

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.

 

Mar 14, 2013 10:08PM
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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...

Mar 14, 2013 9:55PM
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Up for 10 days ??? That's some good dang ole Viagra there... Better watch out when it turns loose though.. lots of peeps not gonna be happy.
Mar 14, 2013 6:33PM
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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...?

Mar 14, 2013 10:06PM
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The stock market is a total bubble and it will just be a matter of time before it corrects itself, mark my words, it is obvious. It seems to me some of it is smoke and mirrors courtesy of the last round of QE.
Mar 15, 2013 4:17AM
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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.

Mar 14, 2013 9:10PM
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As the bible says "Richer get richer, the Poor get more poor" Spoke in revelations.
Mar 14, 2013 10:29PM
Mar 15, 2013 2:15AM
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im in the middle class im not going anywhere
Mar 14, 2013 9:50PM
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I thought they were still doing quantitative easing.  Is the market really getting better?  I seriously don't understand how QE works.  It goes against common logic.  What gives?  Some how, some way things just don't add up.  Please explain in simple terms.
Mar 14, 2013 9:10PM
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It's all coming true and so is the end of time.
Mar 14, 2013 8:56PM
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Sure, all these "millionaires".  This is just another 'mechanic' to make us feel so darn good about the way the economy is going.  The only millionaires created are those with "real property' and k's and pensions..which is simply fiat monies added and devalued by the "markets".  These are seniors and not other than that.  Yeah, we shall see now won't we?  Do not be fooled by all this 'creation" in wealth.  It is not here and it not as stated.   
Mar 14, 2013 8:13PM
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Well atleast someone got my 75,000 dollars they lost me in the crash, fuxx them.
Mar 14, 2013 5:58PM
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Where are these 300,000 Millionairs? I wish I knew one,and just how much stock do you have to buy to become a millionaire? I am 58 disabled,unemployed and don't have a dollar to my name,anyone who would like to make a donation, I sure could use some food.Eric Grootveld, Suite B, 4841 Johnston Road,Port Alberni,B.C.,Canada,V9Y5M2 THANK YOU & GOD BLESS
Mar 14, 2013 8:16PM
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insider trading and **** to make you think things are good, been in and out of work for 5 years, fuxx them.  Hope the the arabes take them down agian.
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