US stocks creep up to new records amid caution

NEW YORK (AFP) – US investors are cautious. The Dow Jones Industrial Average and the S&P 500 each repeatedly broke all-time records over the past week. But by Friday neither had managed to rise as much as 0.4 percent in the five sessions.

Friday ended with the S&P 500 managing a minor surge in the final minutes of trade to eke out a fresh record, up 0.39 percent for the week at 2,039.82.

The Dow Jones Industrial Average added 0.35 percent for the week, ending at 17,634.74, 18 points below its Thursday record.

Meanwhile the Nasdaq Composite kept up its march to recover from the 2000 dot- com crash that stunned markets. On Friday the heavily tech- oriented gauge finished at 4,688.54, its best level since March 28, 2000.

After a 1.77 percent gain for the week, it nevertheless remained 360 points shy of the all-time high on March 10, 2000.

The widespread caution was clear, with shares at high valuations by a number of measures.

''Neither buyers nor sellers are showing much conviction at this juncture.. it is basically a game of chicken right now to see which way the market turns and, importantly, why it turns (if it turns at all),'' said analysts at Briefing.com.

''We came so far so fast, it would only be natural to pull back at least a little bit,'' said Tom Cahill of Ventura Wealth Management.

''Between now and the end of the year, the markets probably will move sideways a little bit and then move a little higher.''

Wall Street shares remained supported by firm earnings growth over the past week, with Walmart's forecast-beating third-quarter results Thursday boosting its shares 4.7 percent and propelling the Dow to a new zenith.

For many that was a good sign -- along with a rebound in consumer spending in October reported by the Commerce Department Friday, and the plunge in gasoline prices -- that year-end holiday spending on travel, gifts and restaurants could be strong.