Thursday
April
24
2014
9:07 am
Weather
  Home
  Local News
  State / National / World
  Sports
  Opinion / Letters
  Business
  Arts / Entertainment
  Lifestyle
  Obituaries
  Calendar
  Submit Event
  Comics / Games
  Classifieds
  DJ Designers
  Archives
  Advertise With Us
  About Us
 
 
 
 

Check out our archive of Dining Guides - Yum!

Market remains sluggish
December 05, 2013, 05:00 AM By Steve Rothwell The Associated

NEW YORK — The stock market continued its sluggish start to the month on Wednesday.

The broader market fell for fourth straight day, its longest losing streak in more than two months. A payroll company reported that U.S. businesses last month added the most jobs in a year, and investors worried that the latest sign of growth could mean the Fed begins pulling back on its stimulus sooner than expected.

Sears fell sharply after its CEO reduced his stake in the department store chain.

The latest bout of investor anxiety about the Fed’s plans comes ahead of the government’s closely watched monthly employment report on Friday. The Fed’s $85 billion in monthly bond purchases have supported financial markets and given investors an incentive to buy stocks by making bonds seem relatively expensive.

After surging this year, stocks have had a slow start to December, usually one of the strongest months for the market. The Standard & Poor’s 500 index has dropped 0.7 percent so far, paring its gain for the year to 25.7 percent. Even so, the market’s surge has left some investors nervous. They don’t want to add to their holdings when the market may have reached a peak.

“Things have been up and down,” said Bob Gavlak, a wealth adviser with Strategic Wealth Partners. “There’s some general angst about whether the market is overvalued and when is it going to come back down.”

Sears fell $4.63, or 8.3 percent, to $50.92 after the company’s CEO, billionaire hedge-fund manager Eddie Lampert, reduced his stake in the department store chain to less than half.

CF Industries was the biggest gainer in the S&P 500 index, surging $22.88, or 10.7 percent, to $237.07. The fertilizer company told investors that it was evaluating whether to increase its dividends and said it expected to have “significant” additional cash to give shareholders.

The Dow Jones industrial average fell 24.85 points, or 0.2 percent, to 15,889.77. The S&P 500 index fell 2.34 points, or 0.1 percent, to 1,792.81. The Nasdaq composite edged up 0.80 point to 4,038.

As stocks slumped, the yield on the 10-year Treasury note rose to its highest level in more than two months.

The yield climbed to 2.84 percent from 2.78 percent on Tuesday, resuming its upward trajectory on signs that the economy is improving. In September, the yield reached 3 percent, rising from a year’s low of 1.63 percent in May. Back then, investors speculated that the Fed was set to announce that it would cut back on its stimulus.

Investors are following Treasury rates closely because they are used as a benchmark for setting many kinds of borrowing rates, such as those on mortgages.

However, it will be the speed at which interest rates climb, rather than the absolute level that they reach, that will be crucial for the economy and the stock market, said Quincy Krosby, a market strategist at Prudential Financial.

“Markets can get used to a gradual move,” said Krosby.

The stock market has had an outstanding year. The Dow and the S&P 500 index have climbed to record levels. The two months when the stock market declined came during periods when investors thought the Fed was poised to ease back on its stimulus.

Higher rates will push up borrowing costs, but stock investors should welcome the end of stimulus because it shows the economy is strengthening, said Doug Cote, chief market strategist at ING Investment Management.

“Ultimately, it’s a good thing,” said Cote. “It means the economy is standing on its own two feet.”

In commodities trading, oil rose $1.16, or 1.2 percent, to $97.20 a barrel. Gold climbed $26.40, or 4 percent, to $1,247.20 an ounce.

Among stocks making big moves:

— Deere & Co. rose $2.67, or 3.2 percent, to $85.38 after the farm equipment maker’s board of directors approved an increase to the company’s stock buyback program.

— Express fell $5.67, or 23 percent, to $19 after the clothing retailer reported earnings that missed analysts’ estimates and lowered its full-year earnings forecast.

 

 

Tags: percent, market, investors, stock, after, stocks,


Other stories from today:

Disney raises annual dividend to 86 cents
Market remains sluggish
In Japan, General Motors has high hopes, low sales
 

 
Print this Page Print this Page  |  Bookmark and Share
<< Back
 
Return To Archives
 
  


 
 
 
Daily Journal Quick Poll
 
Do you support a land swap between the city of San Carlos and the elementary school district so the Charter Learning Center could be built on North Crestview?

Yes
No
Not sure

 

 
Tabbed Structure - Regular
  • The Daily Journal's office is located at:

    800 S. Claremont St., Ste. 210,
    San Mateo, CA 94402
    Phone: (650) 344-5200
    Fax: (650) 344-5290

    Email:
    news [at] smdailyjournal.com

These are currently our most viewed stories
To Report News - Click Here
 
 
 
 
 
FDA proposes first regulations for e-cigarettes
WASHINGTON — The federal government wants to ban sales of electronic cigarettes to minors and requ..
Man, 84, arrested for shooting at Daly City medical facility
Police in Daly City have arrested an 84-year-old man in connection with a shooting at a medical cent..
More >>  
 
 
  
 
  
 
©2014 San Mateo Daily Journal
San Mateo County garage sales