WALL STREET : Dow Breaks 14,000 for First Time in 5 Years

U.S. stocks rally; Dow industrials top 14K

It’s taken nearly 2,000 days and countless migraines, but the Dow Industrials have finally recaptured the 14000 threshold.

Friday was all about jobs and the magical 14K level. For the first time in more than five years, the Dow Jones Industrial Average (DJIA) finished above the mark it has been chasing in recent weeks. It got there with a push from a jobs report that may not have looked strong on the surface, but showed there was more job creation in the U.S. during the final two months of 2012 than originally thought. Friday also marked the fourth-straight week of increases for most of the major indices.

The Dow Jones Industrial Average rose 149.21 points, or 1.08%, to 14,009.79, its first finish above the 14,000 level since Oct. 12, 2007. Up 0.8% from the week-ago close, the blue chip index’s weekly win run was its longest running since August. 
The S&P 500 index gained 15.06 points, or 1.01%, to 1,513.17, posting a 0.7% weekly advance, with telecommunications leading the gains among its 10 major industry groups.

The Nasdaq Composite added 36.97 points, or 1.18%, to 3,179.09, up 0.9% from last Friday’s finish.
The CBOE Volatility Index (VIX) finished at 12.90, down a little more than a point, or 9.66%. The VIX broke its four-day streak of finishing north of 13. Friday's downturn pushed the VIX into negative territory for the week, as it fell 0.08%.

For every stock falling nearly four rose on the New York Stock Exchange, where almost 757 million shares traded. Composite volume approached 3.9 billion.

MARKET GURUS' QUOTES
"Everyone was so concerned about the fiscal cliff, yet we had some really strong hiring in the private sector during those months. The Dow’s reaching 14,000 is another positive sign after finishing one of the strongest months on record."

"Friday’s rally followed a solid month for equities, with the S&P 500 gaining 5% in January, which also marked the first full month since 2007 where more money flowed into equity funds than bond funds."

"The significantly stronger payroll gains tell us the economy has a lot more momentum than what we had thought. Beyond the job market, the economy is showing other signs of health. Factories were busier last month than they have been since April 2012. Ford, Chrysler and General Motors all reported double-digit sales gains for last month, their best January in five years."

"Some economists had feared that federal budget standoffs might chill spending, investing and hiring. They worried that companies wouldn't hire and consumers would scale back spending in November and December because big spending cuts and tax increases were to take effect Jan. 1 if the White House and congressional Republicans couldn't reach a budget deal. It turns out, the fears were overblown. In the midst of the budget fight late last year, employers kept hiring."

"U.S. markets aren't the only ones in a major rally: The Japanese Nikkei 225 stock index has risen in each of the last 12 weeks, something that hasn't happened since 1959."
“With sentiment running high, investors who can afford to be a little more patient by adding equities in a measured way will be rewarded over the course of the full year. This could turn into a very good year but it’s probably not going to do it all in February.” 

"Many believe the recent surge of equity inflows could be a bearish sign, especially since ordinary investors tend to lag behind so-called “smart money.” EPFR data showing equity inflows of $18.8 billion this week triggers a “sell signal from our contrarian global flow trading rule.” The last sell signal back in January 2011 was followed by an 8% correction a few weeks later. On average, the signal precedes a 5% correction in global equities over the subsequent four to five weeks."

HAPPY WEEKEND

Wall Street ends 2012 riding high on "cliff" deal optimism

Monday rally closes out year of index gains from 7% to 16%

The markets closed out the year in rally mode amid hopes lawmakers will be able to finalize a deal to avert the fiscal cliff. Despite a tumultuous year-end run, the major market averages all tacked on solid gains for 2012. 

 

The Dow Jones industrial average (DJIA) gained 166.03 points, or 1.28 percent, to end at 13,104.14. The Standard & Poor's 500 Index gained 23.76 points, or 1.69 percent, to finish at 1,426.19. The Nasdaq Composite Index gained 59.20 points, or 2.00 percent, to close at 3,019.51. For every stock falling six gained on the New York Stock Exchange, where almost 732 million shares traded. Composite volume neared 3.2 billion.

 

The Dow rose 7.3 percent in 2012 and the Nasdaq climbed 15.9 percent. The S&P 500 closed out 2012 with a 13.4 percent gain for the year, compared with a flat performance in 2011. 

 

Market Gurus' Quotes

 

"My personal skepticism, I don't trust anything out of Washington until it is signed, sealed and delivered, and it is not signed, sealed and delivered."

 

“It is a little like trying to catch the flu so you can drop 20 pounds, There are better ways to go about it.”

 

"The worst news could have been the president coming out and saying, 'We don't have a deal and we've giving up,' and he didn't say that."

 

"It seems only fitting that politics, which have shaped the investment climate to such a large extent this year, dominates on this last day of 2012." 

 

“Don’t be overzealous in the new year. It’s better to start off conservatively and see if you can handle it before taking on more trades. It ain't over yet."

 

 WELCOME 2013

WALL STREET 20 Oct 2012 >>> Dow Swallows Huge Losses On Bleak Blue-Chip Earnings

Parabolic SAR follows price and can be considered a trend
 following indicator. SAR can act like a trailing stop.
Once an uptrend reverses and starts down, stops
continuously falls as long as the downtrend remains
 in place. The SAR dots have yet to appear at the
Extreme Point (Top) of the above chart.
 

DOW SLAMMED BY WEAK EARNINGS
The Dow Jones Industrial Average (DJIA)  spent the session wallowing in the red, suffering a triple-digit slide and erasing nearly all of its weekly surplus by the close. The (DJIA – 13,343.51)  blazed a steady trail lower today, surrendering 205.43 points, or 1.52%, to pare its weekly gain to just 0.1%. As a result of its worst single-session drop in four months, the blue-chip barometer ended beneath its 50-day moving average for the first time since July 12. Of the Dow's 30 components, only Home Depot (NYSE:HD) bucked the trend, tacking on 0.2%. Of the 29 declining equities, McDonald's (NYSE:MCD) suffered the worst, giving up 4.5% in the wake of disappointing earnings. DJIA had it's weekly surplus shaved to 0.1%.

Likewise, the S&P 500 Index (SPX – 1,433.19) steepened its losses as the session progressed, falling 24.15 points, or 1.66%, before finding a foothold in the 1,430 region. For the week, the SPX edged 0.3% higher. Meanwhile, a batch of lackluster earnings in the tech sector weighed on the Nasdaq Composite (COMP – 3,005.62), which plunged 66.78 points, or 2.17%, to finish at its lowest point since Aug. 6. However, the index maintained its perch atop the round-number 3,000 marker. For the week, the COMP gave up 1.3%.

 

ANALYSTS' QUOTES

 

“And once you get one quarter of negative earnings, it’s a precursor. It’s the cockroach theory: If you find one, there’s probably many more.”

"Today was all about earnings. The reality is we're in the second inning and earnings have stunk. We'd better put our 'rally caps' on and hope earnings come in a lot better next week, or the recent weakness could very well continue."

“We’ve had some household names disappointing on revenue, earnings or guidance. We had about 80 companies reporting this week: financials that did better and technology that did worse. Since this is the worst day we’ve had in months, it reminds us that we haven’t had much volatility or downward pressure since the bottom in June.

“The earnings season is not great right now, but the fundamentals haven’t changed; the U.S. economy is still improving, and it hasn’t gotten worse in Asia or Europe. The market is taking a pause.”

"Poor corporate earnings reports pounded the market today, in a sour end to an otherwise strong week of trading. Disappointing results from three giants of the Dow _ Microsoft, General Electric and McDonald’s _ were to blame. But the broader market fell, too, and the Standard & Poor’s 500 index fared even worse in percentage terms."

HAPPY WEEKEND

Wall Street : Dow Rally for 2nd day on strong Earnings Data

DOW'S BEST DAY SINCE QE3
Thanks to some upbeat news on the earnings front, the Dow Jones Industrial Average (DJIA) secured a triple-digit gain within the first hour of the session, and remained firmly planted above the 13,525 level throughout most of the day. This is the best performance since the introduction of QE3.

The Dow Jones Industrial Average (DJI – 13,551.78) tagged an intraday peak of 13,556.37 before pulling back slightly to close 127.55 points, or 0.95%, higher. Only five of the 30 Dow components ended in the red today, with UnitedHealth Group Inc.'s (NYSE:UNH) 1.1% decline leading the handful of laggards. On the other side of the fence, Intel Corporation (NASDAQ:INTC) paced the advancers with a rise of 2.9%. Meanwhile, General Electric Company (NYSE:GE) remained unchanged.

The S&P 500 Index (SPX – 1,454.92) and Nasdaq Composite (COMP – 3,101.17) both headed north early in the session and notched solid wins by the time the dust settled. The SPX tacked on 14.79 points, or 1.03%, while the COMP added 36.99 points, or 1.21%.

 

The CBOE Market Volatility Index (VIX – 15.21) edged 0.05 point, or 0.33%, lower today, breaching its 20-day moving average for the first time in over a week.

 

HAPPY TRENDING

More Multi-Year Highs for the Dow, SPX as Summertime Rally Continues

08 Sept 2012 Wall Street end the shortened week on a bullish note
U.S. stocks clung to the flatline and stayed near multiyear highs Friday as disappointment over the August jobs report was countered by hopes the gloomy data could give the Federal Reserve further reason to unleash a third round of quantitative easing. The Dow Jones Industrial Average (DJI) drifted below breakeven before lunchtime, but battled its way back into the black in the last minutes of trading. With that, the blue-chip barometer secured a respectable return  of 1.65% for the week.

The markets will be laser focused on the Federal Reserve next week, anxiously awaiting word on whether the central bank will initiate another round of economic stimulus.

The Federal Open Markets Committee, which sets most Fed policy, is meeting Wednesday and Thursday and a statement is due at the end of the second day. Fed Chairman Ben Bernanke will hold a press conference Thursday afternoon.

Stock markets are all hoping for another round of quantitative easing, in which the Fed buys      U.S. securities in an effort to goose the stumbling U.S. economy. Friday’s dismal labor report which revealed that just 96,000 jobs were created in August only boosted hopes among investors for QE III.

The Dow Jones Industrial Average (DJI – 13,306.64) was rather flat all session long, but found itself up 14.6 points, or 0.1%, by the closing bell. The Dow posted its best daily settlement since December 2007. Half of the 30 components slipped into negative territory, with Kraft Foods Inc's (NASDAQ:KFT) 5.5% loss pacing the laggards. On the other hand, the 15 outperformers were led higher by Bank of America's (NYSE:BAC) 5.4% gain. During the holiday-shortened week, the Dow enjoyed a 1.65% rise.

 

Adding 5.8 points, or 0.4%, the S&P 500 Index (SPX – 1,437.92) prolonged its stay in the black today and closed at a fresh four-year high. Plus, the SPX marked its best daily close since January 2008. For the week, the broad-market index climbed 2.2%.

 

The Nasdaq Composite (COMP – 3,136.42) enjoyed another multi-year high run, touching 3,139.61 in intraday action -- its loftiest price since mid-November 2000. And after the dust cleared, the tech-rich barometer eked out a fractional win. The COMP turned in the best weekly performance of its peers, rallying 2.3%.

For every stock sliding in New York Friday, more than two gained on the New York StockExchange, where nearly 680 million shares had traded. Composite volume reached 3.7 billion.

 

HAPPY WEEKEND