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Fw: USA : Dow Extends Longest Rally Since 1996 as Treasuries Pare Losses : Bloomberg Inbox | | | | | | (BN) Dow Extends Longest Rally Since 1996 as Treasuries Pare Losses
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Dow Extends Longest Rally Since 1996 as Treasuries Pare Losses
2013-03-13 20:03:05.470 GMT
By Susanne Walker and Sarah Pringle
March 13 (Bloomberg) -- U.S. stocks rose, extending the
longest rally for the Dow Jones Industrial Average since 1996,
and the dollar strengthened as faster-than-forecast growth in
retail sales bolstered optimism in the economy. Treasuries pared
losses as an auction drew a lower-than-forecast yield.
The Dow rose for a ninth day, adding 5.07 points to
14,455.13, and the Standard & Poor’s 500 Index increased 0.1
percent. The Stoxx Europe 600 Index erased most of an earlier
0.5 percent decline to close little changed, while Chinese
shares slid to a two-month low. Ten-year Treasury yields
increased less than 1 basis point to 2.02 percent after adding
as much as 3.5 points earlier. The S&P GSCI Index of commodities
fell 0.4 percent, reversing an earlier gain. The dollar touched
a three-month high against the euro.
Commerce Department data showed sales at U.S. retailers
rose 1.1 percent in February, the most in five months and more
than twice the median estimate of economists. Industrial
production declined 0.4 percent in January in the 17-nation euro
area, exceeding a 0.1 percent decline forecast by economists,
and adding to signs that the region’s recession extended into
the first quarter.
“The retail number was nice and that’s helping lessen
concern that the combination of high gas prices and taxes would
combine to slow down consumer spending,” Erick Maronak, chief
investment officer at Victory Management Inc., said over the
phone. The New York-based firm oversees about $3 billion. “On
balance things look pretty good.”
Market Leaders
Retailers and other companies that rely on discretionary
consumer spending helped lead gains in the S&P 500 today, with
Kohl’s Corp., Best Buy Co. and Nike Inc. gaining more than 2
percent.
International Business Machines Corp., McDonald’s Corp. and
Travelers Cos. helped lead gains in the Dow today as the 30-
stock gauge set a record high for a seventh straight day.
Netflix Inc. jumped after announcing new social features
integrated with Facebook Inc. Spectrum Pharmaceuticals Inc., a
maker of cancer medicines, plunged after saying sales will miss
analysts’ estimates. Express Inc. tumbled after forecasting
first-quarter and full-year
The S&P 500 rebounded after falling yesterday, ending a
seven-day winning streak that drove the index within nine points
of its all-time high. The benchmark gauge has more than doubled
from its bottom in 2009 as the rally was fueled by corporate
earnings that topped estimates and monetary stimulus from the
Federal Reserve.
The S&P 500 may follow the Dow to a record by the end of
the month, giving investors a chance to sell, according to
technical analysts at UBS AG. The index, up more than 9 percent
so far this year, will continue its advance before the expiry of
options contracts at the end of March, heading for a resistance
level of 1,560 to 1,570, Michael Riesner and Marc Mueller wrote
in a report dated yesterday.
Bull Markets
Another year or more of gains may lie ahead for U.S. stocks
if history is any guide, according to Jeffrey Kleintop, LPL
Financial Corp.’s chief market strategist. The bull market that
began in March 2009 is the seventh to last at least four years
since World War II, as Kleintop wrote two days ago in a report.
Four of the previous rallies ran for five years or more, and the
fifth year produced a 22 percent average gain for the S&P 500.
Still, the Boston-based strategist wrote, the index may be
overdue for a drop of 5 percent or more before resuming gains.
Treasury Auction
Rates on 30-year bonds were little changed at 3.22 percent
after climbing three points earlier, while two-year note yields
increased less than one basis point to 0.26 percent.
The $21 billion of 10-year notes sold today drew a yield of
2.029 percent, compared with a forecast of 2.057 percent in a
Bloomberg News survey of eight of the Federal Reserve’s 21
primary dealers. The bid-to-cover ratio, which gauges demand by
comparing total bids with the amount of securities offered, was
3.19, versus an average of 2.92 at the past 10 sales.
The Stoxx 600 has retreated this week after climbing to a 4
1/2-year high on March 8. Adecco SA, the world’s biggest
supplier of temporary workers, lost 2.1 percent today after
fourth-quarter profit missed analyst estimates. Enel SpA sank 6
percent as Italy’s largest utility said earnings tumbled 79
percent last year and won’t recover until 2017. Prudential Plc
advanced 9.3 percent as the U.K.’s biggest insurer by market
value raised its dividend and reported income that beat
projections.
Europe Yields
Italian 10-year bonds fell after 7 billion euros ($9
billion) of debt sales and Spain’s securities ended a run of 10
straight gains.
Italy’s 10-year bond yield rose six basis points to 4.67
percent and Spain’s rose four points to 4.77 percent. As well as
an Italian auction today, Germany sold 4.3 billion euros of two-
year notes, Britain issued 1.5 billion pounds ($2.2 billion) of
2052 securities and Ireland sold 5 billion euros of 10-year
bonds via banks.
Ireland laid the foundation to regain its economic
sovereignty, with the biggest bond sale since the near-collapse
of its financial system forced the nation to seek a bailout in
2010.
Bullish bets on Japan’s currency in the options market
climbed to a nine-month high after the largest opposition party
said yesterday it would vote against BOJ deputy governor nominee
Kikuo Iwata, an advocate of quantitative easing.
The yen trimmed its gain versus the dollar to less than 0.1
percent after strengthening as much as 0.6 percent 95.45 per
dollar. Japan’s currency reached 96.71 yesterday, the weakest
level since August 2009. It appreciated 0.6 percent to 124.38
per euro. Europe’s shared currency weakened 0.6 percent to
$1.2451.
China Real Estate
Property shares slumped in Hong Kong and China on concern
policy makers will step up curbs after Sina.com reported the
city of Shenzhen banned developers from raising home prices.
“Property curbs and the central bank’s possible attitude
towards tightening liquidity make investors nervous,” said Wang
Weijun, a strategist at Zheshang Securities Co. in Shanghai.
“There’s concern the economic recovery will falter.”
Energy products led the S&P GSCI Index of commodities down,
with soybeans, coffee and Brent crude dropping more than 1.1
percent for the biggest declines. West Texas Intermediate crude
erased earlier gains to trade little changed.
For Related News and Information:
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Top stock-market news: TOP STK <GO>
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Most-read stock market stories: MNI STK <GO>
--With assistance from Andrew Rummer, Paul Dobson, John Deane,
Maria Levitov and Michael Shanahan in London, David Yong and Wes
Goodman in Singapore and David Wilson in New York. Editors:
Michael P. Regan, Jeff Sutherland
To contact the reporters on this story:
Susanne Walker in New York at +1-212-617-1719 or
swalker33@bloomberg.net;
Sarah Pringle in New York at +1-212-318-4378 or
springle1@bloomberg.net | |
....
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