Dow, S&P 500 end at record highs

NEW YORK Fri Jun 20, 2014 6:04pm EDT

1 of 2. Traders John Bowers (L) and John Elliott work on the floor of the New York Stock Exchange June 19, 2014.

Credit: Reuters/Brendan McDermid

NEW YORK (Reuters) - U.S. stocks rose on Friday, driving the Dow and the S&P 500 to close at record highs as the shares of 330 companies hit 52-week highs on the New York Stock Exchange.

The S&P 500 scored its third record closing high in a row while the Dow surpassed its previous record close on June 10. The blue-chip index hit an all-time intraday high at 16,978.02, coming close to the 17,000 mark.

For the week, the three major U.S. stock indexes rose 1 percent as investors brushed off geopolitical concerns about Iraq and focused on the Federal Reserve's comments indicating that it will keep interest rates low for a long period of time.

The benchmark S&P 500 has gained for six consecutive days, supporting a cautious view that a near-term correction may be inevitable.

"I haven't been concerned for weeks, but I'm becoming a bit concerned now with where the market is, especially with many indicators hitting levels that are contrary to the normal reading," said Randy Frederick, managing director of active trading and derivatives for Charles Schwab in Austin, Texas.

The most notable indicators included the correlation of the CBOE Volatility Index .VIX, known as the VIX, with the S&P 500. The VIX usually moves inversely to the S&P 500.

The fear gauge is near its lowest since February 2007 while the S&P 500 is at an all-time high. For the VIX to be near the lowest level in more than seven years while the S&P 500 is at a record high is causing concern that the market may be too complacent.

"I'm expecting not a big correction like 10 percent or so, but a good 3 to 4 percent adjustment next week won't be a surprise," Frederick said.

The VIX rose 2.2 percent to close at 10.85, still well below its long-term average of 20.

Volume was higher than usual as Friday marked a "quadruple witching" day - the expiration of stock options, index options, index futures and single-stock futures.

The Dow Jones industrial average .DJI rose 25.62 points or 0.15 percent, to end at 16,947.08. The S&P 500 .SPX gained 3.39 points or 0.17 percent, to 1,962.87. The Nasdaq Composite .IXIC added 8.71 points or 0.20 percent, to 4,368.04.

For the week, the Dow rose 1 percent, the S&P 500 climbed 1.4 percent and the Nasdaq gained 1.3 percent.

Oracle Corp (ORCL.N) shares dropped 4 percent to $40.82 and ranked among the biggest drags on the S&P 500. The stock's slide came a day after the software maker posted fiscal fourth-quarter results that disappointed investors looking for more progress against rivals selling web-based services.

But CarMax (KMX.N) surged 16.5 percent to $52.75. The stock was the S&P 500's best performer after the used-vehicle retailer reported first-quarter earnings that topped analysts' expectations.

RadioShack Corp (RSH.N) was among the 18 stocks that hit a 52-week low on the New York Stock Exchange on Friday. The stock hit a lifetime low, dropping into penny-stock territory for the first time on heavy volume. The stock fell 10.4 percent to 92 cents.

Volume was heavy after RadioShack's stock fell under the threshold, with about 13 million shares exchanging hands, compared with its composite 25-day average of 3.9 million.

About 7.2 billion shares changed hands on U.S. exchanges, well above the average of 5.5 billion for the month to date, according to data from BATS Global Markets.

(Editing by Jan Paschal)

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Comments (5)
JustProduce wrote:
Still waiting for the blow up top. Until it happens, it’s all inflationary melt up.

Jun 20, 2014 9:00am EDT  --  Report as abuse
divinargant wrote:
You know it really is amusing how these pictures at the head of these articles always show these intense floor traders who seemingly are very involved in the trading process. I wonder how many in the general public realize that anymore this is mainly for show and in fact these zombies are really just part of the construct and image put there to stage the human element as being a vital part of the trading action. At one time long ago that was a necessary function..not so much anymore. It now functions primarily for the purpose of promoting an image for the cameras since the main action is behind this staged show coded in software traveling in nano seconds making or breaking the trade.

Jun 20, 2014 12:54pm EDT  --  Report as abuse
PopeAlgore wrote:
Yep, the only people getting ahead are Obama’s Wall Street banking buddies and CEOs with sky-high bonus checks.

The Obama Years will be remembered as the time when the rich became ultra-rich, the middle class kept losing ground, and the poor were enslaved on the Democrat Plantation of government dependence. But the brainwashed ObamaVoters will defend this disaster, no matter what!

Jun 20, 2014 6:20pm EDT  --  Report as abuse
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