By Dow Jones Business News, March 05, 2013, 10:12:00 AM EDT
--Stocks rise ahead of service-sector reading
--Dow notches all-time intraday high
--Upbeat data boosts European markets
By Matt Jarzemsky
The Dow Jones Industrial Average powered to an all-time high, riding a resilient 2013 advance and putting devastating
declines of the financial crisis in the rear-view mirror.
"It really does represent an achievement that we have climbed out of this crater," said Jack Ablin, chief investment
officer at Chicago'sBMO Private Bank, which manages about $66 billion.
The Dow industrials rose 94 points, or 0.7%, to 14222 in the minutes after the opening bell, surpassing their earlier
intraday high of 14198.10, set in October 2007. Blue chips slid 54% over the ensuing 18 months, bottoming at 6547.05 in
March 2009. A close above 14164.53 would be the highest finish ever for the Dow.
The Standard & Poor's 500-stock index rose 12 points, or 0.8%, to 1537. The Nasdaq Composite Index added 31 points, or
0.9%, to 3212.
"The national perception will be that we're past the lost decade if we go to new highs in the stock market," said Jim
Paulsen, chief investment strategist at Wells Capital Management, which manages $332 billion. "The conversation has
been: Are you being conservative enough in this high-risk investment world? And what it's changing to is: Are you being
too conservative in this new bull market?"
Along with economic stabilization and the recovery in corporate profits, efforts by the Federal Reserve and other
central banks to boost asset prices have also juiced stocks' rally. Bulls also argue equities remain cheap, relative to
companies' earnings, and that low bond yields will force more investors to buy companies' shares.
But skeptics point to a slowing earnings outlook and potential tax and spending headwinds as lawmakers sort out the
U.S.'s debt troubles.
On the economic calendar Tuesday, the Institute for Supply Management's nonmanufacturing purchasing managers index for
February, due at 10 a.m. EST, is expected to slip slightly to 55.0 from January's 55.2.
European markets were broadly higher, with the Stoxx Europe 600 up 1.6%. Euro-zone retail sales rose more than
expected in January, according to Eurostat. Markit's February composite purchasing managers index for the region was
Asian markets bounced from the previous session's sharp declines. China's Shanghai Composite, which tumbled 3.7% on
Monday after the introduction of new measures to cool the country's property market, climbed 2.3%. Outgoing Premier Wen
Jiabao helped reassure investors as he kicked off the annual session of the National People's Congress by announcing an
economic growth target of 7.5% for 2013, as expected.
Elsewhere, Australia's S&P ASX 200 gained 1.3% after stronger-than-expected retail-sales data and Japan's Nikkei Stock
Average added 0.3% to close at a fresh 4½-year high.
Front-month April crude-oil futures added 0.4% to $90.46 a barrel, while March gold futures advanced 0.7% to $1,582.90
an ounce. The dollar eased slightly against both the euro and the yen.
Shares of J.C. Penney fell 5.1% after reports that commercial landlord Vornado Realty Trust looked to sell 10 million
shares, or more than 40% of its holdings in the department-store chain.
Ascena Retail Group climbed 11% after the operator of Dressbarn, Justice and Maurices stores reported a smaller-than-
expected decline in earnings.
Qualcomm gained 2.4% after the semiconductor maker raised its dividend by 40% and announced a $5 billion stock
Impax Laboratories slid 23% after saying Food and Drug Administration inspectors have found continuing problems at its
Hayward, Calif., manufacturing facility that may affect new and pending drug applications.
Santarus surged 8.3% after the biopharmaceutical company reported fourth-quarter earnings and revenue that topped
analyst expectations and affirmed its 2013 outlook.
Williams Partners shed 3.3% after the natural-gas transportation company announced an equity sale.
Write to Matt Jarzemsky at email@example.com
(END) Dow Jones Newswires
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