S&P 500 closes at record again; financials, Apple lead

NEW YORK Mon May 6, 2013 7:20pm EDT

Traders work on the floor at the New York Stock Exchange, May 1, 2013. REUTERS/Brendan McDermid

Traders work on the floor at the New York Stock Exchange, May 1, 2013.

Credit: Reuters/Brendan McDermid

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NEW YORK (Reuters) - The S&P 500 closed at another record high, pushing further above 1,600 as financial shares led the way after Bank of America's settlement with MBIA.

Apple's advance helped lift both the S&P and the Nasdaq.

Bank of America (BAC.N) said it would settle claims with MBIA (MBI.N) for $1.6 billion, lifting shares of both companies as well as the S&P financial sector Index .SPSY, which gained 1 percent. MBIA shares jumped 45.4 percent to $14.29 and Bank of America shares rose 5.2 percent to $12.88.

The day's gains followed a strong run in stocks since the start of the year. Supportive monetary policies that have kept interest rates low as well as solid earnings have helped to keep the market up. The S&P 500 has gained 13.4 percent since December 31.

"As long as you continue to have decent earnings reports and the support from central banks around the world providing liquidity, it's going to be hard to derail this market, at least in the short term," said Michael James, managing director of equity trading at Wedbush Securities in Los Angeles.

Apple shares (AAPL.O) were also among the top gainers after Barclays raised its price target on the stock. Apple shares shot up 2.4 percent to $460.71, leading both the Nasdaq composite index and the benchmark S&P 500 higher.

The Dow Jones industrial average .DJI dipped 5.07 points, or 0.03 percent, to 14,968.89 at the close. But the Standard & Poor's 500 Index .SPX inched up 3.08 points, or 0.19 percent, to finish at a record 1,617.50. The Nasdaq Composite Index .IXIC gained 14.34 points, or 0.42 percent, to close at 3,392.97.

During the session, the S&P 500 also reached an all-time intraday high of 1,619.77.

Although weak economic data from the euro zone and China has caused concerns over the global growth outlook, Friday's stronger-than-expected U.S. payrolls report fueled the gains that drove both the Dow and the S&P 500 to record levels.

Warren Buffett said on Monday that low interest rates have made bonds "terrible" investments, but stocks are "reasonably priced," and he continues to shy away from sectors such as media, where he cannot predict which will thrive in the long run.

But some analysts suspect the rally has little strength to keep going on.

The market "is discounting a tremendous amount of good news now, which I don't think is going to be substantiated, and I don't think it's allowing for any possibility of bad news," said Uri Landesman, president of Platinum Partners in New York.

Earnings have been mostly higher than expected, with 68.5 percent of companies surpassing estimates so far. At the same time, second-quarter estimates have fallen as outlooks remain more negative than positive.

Among Monday's reports, Tyson Foods Inc (TSN.N) posted a weaker-than-expected quarterly profit and cut its full-year sales forecast. Its shares declined 3.3 percent to $24.10.

In contrast, Humana Inc (HUM.N) jumped 2.1 percent to $75.49 as one of the S&P 500's biggest percentage gainers. JPMorgan upgraded the stock to "overweight."

But Johnson & Johnson (JNJ.N) shares slid 1.3 percent to $84.68, weighing on the blue-chip Dow average.

GM's stock also declined. The U.S. Treasury said it will begin another round of sales of General Motors (GM.N) stock acquired during the government's bailout of the auto sector. GM shares slipped 0.9 percent to $31.82.

Volume was roughly 5.3 billion shares traded on the New York Stock Exchange, the Nasdaq and the NYSE MKT, below the average daily closing volume of about 6.4 billion this year.

Advancers outpaced decliners on both the NYSE and the Nasdaq by a ratio of about 3 to 2.

(Editing by Kenneth Barry, Nick Zieminski and Jan Paschal)

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Comments (3)
commonsense4 wrote:
Blah Blah, Obama, Blah Blah, I’m scared… the sky is falling, fear, blah blah, distorted numbers, blah blah… the country is failing, debt, blah blah, guns.

May 06, 2013 12:31pm EDT  --  Report as abuse
Billy15 wrote:
“Unfinished state, and unsuccessful systems are caught in the planetary limb that interferes with the European project in the logic of including those areas that already belong to the European territorial structure.”

Must be articulate strong anti-European stance in order to have a chance to connect all the elements into a meaningful whole. For example., it turns out that Italy, Spain, Portugal, Greece are unfinished state, unlike Germany, Great Britain, Sweden., which are top noch. It is an economy power, which by itself is not the superiority of organization and construction of the state. This superiority comes from forcing those state mechanisms in the economic purpose of achieving profit and capitalist expansion.

But the point is that the state system is not based on economics, but the other way around. Organization of the state is based on the idea of ​​what is good, just, true, free. When the idea is its set, its legality, content, such that recognizes itself, its proper implementation, in the world of production of goods and services, goods and cash flows, the singularity of property, then we have a capitalist state in which the principle of freedom remains at the level of abstract individuality. This means that it is understood solely by its point of singularity, which it defines as excluding relation to the other, as to the knowledge of the moment of generality that it also constitutes – not mature, or it remains clouded. This side developed communism, but we will not talk about that.

Everything is anxious to determine what is the individuality and its freedom. And now we have capitalism with its exclusionary attitude; individual and the state can˙t reach equality, mutual respect with other individuals or states, because excluding relation to other is just constitutive for them. They are nothing more than that relation.

And now Germany and other northerners oppressed less developed economically southerners; course within the states they oppressed, more or less, immigrants, low-class, and so on. Northerners also somebody oppress, it is America. Telling them what to do and how, when someone is not listening there is a beating. Let’s not mention examples, as they undergo the Western statesmen who dare to go to visit Fidel Castro and practice socialism, and what methods are available when the communists in a western country too their heads, for example in Italy.

In capitalism, everyone is at the same time on one oppressor and oppressed on the other side. The cause is that the abstract individualism of both the individual and the state can not come to independence, because it does not know the moment of generality. So it is not only opposed to the other from him but also depend on. Capitalist is dependent on workers and vice versa. The same applies to the states. European countries, although they are subordinated – need big boss. Condition, a situation in which both individuals were equal and mutually respected in the overall integrity of its person and its liberty will remain unknown to the West. Thus we see that the rule of the principles of abstract particulars of “free world” has in itself still a problem unsurmounted ancient contrast of lordship and bondage. The instability of this world rests in the fact that he basically does have the principle of liberty, that is, also the principle of universality, equality, and so on., but fails to reconcile it with other moment of individual freedom – the principle of singularity, which is that world’s leading and which is the same way as the principle of universality for freedom is constitutive. From there, the tension, there crumbling, hence the crisis. This world is torn apart in itself.

Who oppresses America? Is it the top of the chain and hierarchy? Does the principle of capitalism that America finally moves from exclusionary relationships to each other, necessarily, except in relation to himself. It certainly was. However, someone in a certain, although much milder way almost oppressive and does not respect even America. We know that it is Israel, according to which America shows weakness and condescending astonishing. The reason for that is not the power of the Israeli economy, or the military, and as we can see in this example, that reality is not what rules, but there is a principle, the idea of the West that in Israel is carried out more consistently and more extreme. That is its superiority.

America and Israel are so deeply involved in the paradoxical relationship, where the all-powerful protector of big brother humbly obey his ward, that you might think that there comes a kind of internal conflict. Internal conflict is the essence, but as it is a two-state here is not its stage. Israel appears to be perhaps the greatest master. He does not humiliate, except in a moral sense. He still can not impart lessons on human rights, those who have the make-up can still: this is the price going to the extreme. Everything has a price to different payment method.

May 06, 2013 4:28pm EDT  --  Report as abuse
d_web wrote:
Sounds like we are headed for an eventual Black Thursday.

May 06, 2013 4:37pm EDT  --  Report as abuse
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