Markets make new highs despite rallying dollar
November 19, 2009 - 0:0
The Dow Jones Industrial Average rose 30.46 points, or 0.29%, to 10437.42, the S&P 500 added 1.02 points, or 0.09%, to 1110.32 and the Nasdaq Composite picked up 5.93 points, or 0.27%, to 2203.78. The FOX 50 gained 2.31 points, or 0.28%, to 817.48.
Wall Street ended at session highs as the bears were unable to seize upon a rallying dollar and negative reaction to discount retailer Target's (TGT) cautious outlook.The mini gains come after the Dow soared 136 points to 13-month highs on Monday as traders cheered the latest signals that central banks’ stimulus programs will remain in place.
“You would think we would get a little pullback after this big move and yet we seem to be drifting higher,” NYSE trader Ted Weisberg of Seaport Securities. “Perhaps near-term we’re going up, but I’m not sure we aren’t going to bounce into a wall here pretty soon.”
The majority of the blue-chip stocks made headway on Tuesday, led by Merck (MRK) and Microsoft (MSFT) The index's biggest decliners were McDonald's (MCD) and Home Depot (HD), which reported better-than-expected earnings ahead of the opening bell.
Traders aren't likely to put too much stock in Tuesday's gains as the session was marked by low trading volume. In fact, just over 970 million shares changed hands on the New York Stock Exchange, compared to the one-month moving average floor volume of 1.28 billion shares.
Basic materials stocks led the markets higher once again as gold overcame a stronger dollar to advance for the eleventh day of the last twelve.
Gold gained 20 cents per troy ounce, or 0.02%, to $1138.80, another record closing high.
Mining stocks like Freeport McMoRan (FCX) and Newmont Mining (NEM) shed early losses to close higher.
Crude oil, which posted its best day in nearly two months on Monday, also closed near session highs, allowing energy stocks to pare their losses. Crude settled up 24 cents a barrel, or 0.30%, to $79.14.
Commercial banks also helped drive the markets as stocks like Regions Financial (RF) rallied a day after George Soros' investment group disclosed an increased stake in SunTrust Banks (STI) and a new investment in KeyCorp (KEY).
Consumer discretionary stocks were the biggest losers Tuesday afternoon, slumping almost 1% after discount retailer Target warned it is cautious on the current quarter due to concerns about the holiday shopping season. Dow component Home Depot (HD) saw its shares fall even after beating the Street with EPS of 41 cents a share on in-line sales of $16.36 billion.
The one bright spot was luxury retailer Saks (SKS), which jumped 4% after reporting a surprise profit.
In another sign that inflation doesn’t pose a near-tern threat to the recovery, the Labor Department said its October producer price index rose 0.3%, or half as much as analysts had expected.
Core PPI, which excludes volatile food and energy prices, fell 0.6% last month.
(Source: Foxbusiness)