US stocks push further into record territory
NEW YORK (AP) – The stock market closed out its fifth straight week of gains with another record high on Friday.
The Dow Jones industrial average and Standard & Poor’s 500 index carved out all-time highs, extending the market’s gains for the week. It was the third record close for the Dow in the week and the fourth for the S&P 500.
The latest records extended a comeback in the S&P 500, which has increased 11 percent since plunging in mid-October. A strong third-quarter earnings season, on top of a recent string of positive US economic data on housing, jobs and manufacturing, have helped put investors in a buying mood.
Investors on Friday cheered news of an interest rate cut in China and the possibility that Europe’s central bank will step up stimulus efforts in the region.
“What it suggests is that these central banks are prepared to do even more to stimulate growth, to stimulate demand, and that always equates to better stock markets,” said Quincy Krosby, a market strategist at Prudential Financial.
Energy stocks were among the big gainers, getting a boost from a rebound in oil prices. Some traders anticipated that OPEC will decide to cut production at a conference next week.
All told, the S&P 500 index rose 10.75 points, or 0.5 percent, to 2,063.50. That’s just above the index’s previous high close a day before at 2,052.75. The S&P 500 is up 11.6 percent this year.
The Dow gained 91.06 points, or 0.5 percent, to 17,810.06. That’s up from its last record close of 17,719 on Thursday. The Dow has gained 7.4 percent this year.
The Nasdaq composite added 11.10 points, or 0.2 percent, to 4,712.97. The index is up 12.8 percent for the year.
The prospect of central banks outside the US ramping up their own stimulus efforts is seen as another positive for stock investors, particularly with the Federal Reserve winding down its massive bond- buying program this year.
“Central bank intervention is the No. 1 thing investors worldwide are looking at right now,” said Mike Serio, regional chief investment officer at Wells Fargo Private Bank. “In the short run, that looks pretty good for stocks.”
On Friday, China’s central bank lowered the interest rate on its one- year loans to financial institutions by 0.4 percentage points to 5.6 percent. The surprise cut came in the wake of recent figures showing that the country’s annual growth rate slowed to a five-year low of 7.3 percent last quarter.