U.S. stocks finish at all-time highs anew

Lloyd Doyle
January 13, 2018

The S&P 500 rose 3.58 points, or 0.1 percent, to 2,751.29 to equal its longest winning streak leading off a year since 2010.

The Dow Jones industrial average dropped 16.67, or 0.1 percent, to 25,369.13, the Nasdaq composite fell 10.01, or 0.1 percent, to 7,153.57 and the Russell 2000 index of small-cap stocks slipped 0.30 points, or less than 0.1 percent, to 1,559.80.

Shares of JP Morgan rose 1.1 percent, helping lift the S&P financial index up 0.6 percent, after its fourth-quarter profit beat estimates.

It also became the latest retailer to say it enjoyed a strong holiday season, and its shares rose $1.96, or 2.9 percent, to $69.14.

"Last year was an investor's dream and a nightmare" for short-term traders because of how calm and strong the market was, said Kirk Hartman, global chief investment officer for Wells Fargo Asset Management. The worry is that a surprise spike in inflation would force central banks to move more quickly on rates than investors expect and upset markets.

Banks rose as bond yields continued to climb.

Wall Street pared some of its earlier losses on Wednesday, as U.S. Treasury yields fell from their peak over skepticism China would slow purchases of U.S. government bonds.

And a USA government report Thursday showed that inflation was weaker on the wholesale level last month than economists expected.

Bond prices rose. The yield on the 10-year Treasury fell to 2.54 percent. It had climbed as high as 2.59% on Wednesday. The rise in rates moderated as the day progressed.

"We're all anticipating rising rates, and have been for some time", Severinovsky said.

COMMODITIES: Benchmark U.S. crude oil rose 24 cents to $61.97 per barrel.

The price of benchmark US crude was up 1.5 percent at $64 a barrel.

Low interest rates have been one of the main propellants for the stock market's calm rise to records. Whether investors are anxious about a future pickup in rates or about how stocks have become more expensive than usual, any dip for the market over the past year has been shallow and short. The next test for the market may arrive in coming weeks as companies report their profits from the last three months of 2017. Corporate profits are also on the upswing, and the recently passed tax cut should goose earnings even higher.

CURRENCIES: The dollar fell to 112.71 Japanese yen from 113.07 yen late Monday.

The CAC 40 in France rose 0.6 percent, the DAX in Germany edged up 0.1 percent and the FTSE 100 in London gained 0.4 percent.

Natural gas rose 18 cents to settle at $3.08 per 1,000 cubic feet. Wholesale gasoline was steady at $1.84 a gallon.

In markets overseas, Japan's Nikkei 225 index lost 0.2 percent, South Korea's Kospi advanced 0.3 percent and Hong Kong's Hang Seng jumped 0.9 percent.

Other reports by Iphone Fresh

Discuss This Article