Thursday, March 14, 2013

Dow rises for 10th day, S&P eyes record

from Reuters



Traders work on the floor at the New York Stock Exchange, March 13, 2013. REUTERS/Brendan McDermid
NEW YORK | Thu Mar 14, 2013 11:16am EDT
(Reuters) - Wall Street rose on Thursday as the Dowextended its recent winning streak to 10 days in a row after data showed the labor market recovery was gaining traction.
The broader S&P 500 was also closing in on its all-time high in the wake of new record levels for the Dow. The S&P was roughly 5 points away from its closing peak of 1,565.15.
A 10-day run of advances for the Dow would match a string of gains last seen in late 1996. U.S. equities have accelerated since the start of the year, boosted by improvement in the economy and continued easy monetary policy from the Federal Reserve.
"At this point, it's just pure momentum," said Brian Gendreau, market strategist at Cetera Financial Group, based in Los Angeles.
"We are responding to a lot of pent-up demand - people finally coming into the stock market after having been burned very badly in 2008 and 2009."
Three months into the year, the Dow has shot up more than 10 percent, while the S&P has gained 9 percent.
Data on Thursday offered fresh signs of strength in the U.S. labor market as the number of filings for new unemployment benefits fell for the third week in a row.
A separate report showed producer prices rose in February by the most in five months as gasoline prices spiked. There was, however, little sign of a broader increase in inflation pressures that could force the Fed to tighten monetary policy.
The Dow Jones industrial average .DJI gained 55.09 points, or 0.38 percent, to 14,510.37. The Standard & Poor's 500 Index .SPX rose 5.32 points, or 0.34 percent, to 1,559.84. The Nasdaq Composite Index .IXIC added 9.87 points, or 0.30 percent, to 3,254.99.
Energy shares led indexes higher with the S&P sector .SPNY gaining 0.8 percent. Chevron (CVX.N) was among the biggest percentage gainers on the Dow, rising 1.3 percent to $119.90.
EBay (EBAY.O) climbed 3.6 percent to $52.83 after Evercore Partners raised its rating to "overweight."
But on the downside, Amazon (AMZN.O) shares fell 2.7 percent to $267.54 after JPMorgan cut its rating on the stock to "neutral" from "overweight" and lowered its price target to $300 from $333.
E*Trade (ETFC.O) shares tumbled 5.9 percent to $11.12 after Citadel LLC, its largest investor, said it is selling its entire stake in the discount brokerage and bank company.
(Editing by Nick Zieminski)

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