By Dow Jones Business News, March 11, 2013, 07:05:00 AM EDT
U.S. Stocks Continue Higher
NEW YORK--Stocks started the week by chugging higher again, as the Dow Jones Industrial Average recorded its seventh
After a flat open, the Dow climbed 50.22 points, or 0.3%, to 14447.29 Monday, closing near the session's high. The
blue chips capped their longest streak of gains in a year and a fifth straight record high.
"It was a modest move today, but in general, it seems like investors are underinvested and scrambling to get in as
prices keep going up," said Paul Zemsky, chief investment officer of multiasset strategies at ING U.S. Investment
Management, which oversees about $170 billion.
The Standard & Poor's 500-stock index added 5.04 points, or 0.3%, to 1556.22, less than 10 points below its own all-
time high. The Nasdaq Composite Index gained 8.51 points, or 0.3%, to 3252.87.
Gains were broad, with financial and health-care shares leading the way in the S&P 500. Boeing, up 2.1%, topped the
Dow after reports the company is likely to seek approval from its board to sell a new version of its 777 jetliner as
soon as next month. American Express and Merck also gained more than 1% each.
There was little in the way of U.S. economic data or earnings reports to jar traders. The Chicago Board Options
Exchange Volatility Index, or VIX, fell 6.8% to 11.74, its lowest level since February 2007. The VIX measures
expectations for future volatility based on options prices.
"One thing that's remarkable is how methodical, unemotional and boring this bull run has been. It goes up a little
every day," said Jim Paulsen, chief investment strategist at Wells Capital Management, which manages $330 billion. "The
plodding nature of the rally doesn't give you the sense that things have gone too far just yet."
In Europe, the Stoxx Europe 600 lost 0.1% in the wake of Fitch Ratings' downgrade of Italy late on Friday. The ratings
firm lowered Italy's credit rating by one notch to triple-B-plus, three steps above "junk" territory, citing concerns
over political uncertainty at a time of economic weakness. On Monday, data showed Italy's gross domestic product
contracted 0.9% in the fourth quarter. Italy's FTSE MIB index slid 0.7%. The U.K.'sFTSE 100 advanced 0.3% to its
highest closing level since December 2007.
In Asia, data showed industrial production and retail sales in China for the January and February period missed
expectations. In addition, inflation in February rose 3.2% from January, the highest monthly increase since April,
sparking worries of potential monetary tightening. China's Shanghai Composite Index fell 0.3%. Japan's Nikkei Stock
Average rallied 0.5% to a 4 1/2-year high.
Crude-oil prices rose 0.1%, to settle at $92.06 a barrel, while gold added 0.1%, to $1,577.80 a troy ounce. The yield
on the 10-year Treasury note rose to 2.056% as prices fell. The dollar climbed to a 3 1/2-year high against the yen but
fell versus the euro.
In corporate news, Dick's Sporting Goods fell 11% after the company reported quarterly results that fell short of
analysts' expectations and gave a downbeat earnings forecast for the year.
Dell rose 1.5% after reaching a pact with Icahn Enterprises that allows the firm to look at Dell's books, according to
a statement from the investment firm. The agreement comes after Carl Icahn voiced disapproval of the PC company's
planned buyout by founder Michael Dell and Silver Lake Partners.
Genworth rose 6.7% and was the biggest gainer among S&P 500 components after an article in Barron's said the mortgage
insurer's shares are undervalued.
Write to Chris Dieterich at firstname.lastname@example.org and Matt Jarzemsky at email@example.com
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