* J.C. Penney, FedEx gain on hedge fund stakes
* NY factory index falls in Nov to weakest since May -NY Fed
* Twitter options begin trading
* Indexes up: Dow 0.3 pct; S&P 0.1 pct; Nasdaq 0.1 pct
By Luke Swiderski
NEW YORK, Nov 15 The Dow and the S&P 500 reached
new highs on Friday a day after U.S. Federal Reserve Chair
nominee Janet Yellen told a Senate
Committee that the central bank's economic stimulus would
continue and several key important investors disclosed stakes in
companies like J.C. Penney and Exxon Mobil.
A number of big hedge funds made bets on the turnaround of
ailing department store J.C. Penney Co, sending its
shares up 5.4 percent to $9.16.
Gains by the broader market were limited, however, with both
indexes on track for a sixth consecutive week of gains and the
S&P 500 within eight points of 1,800, its next level of
potential resistance. The Nasdaq 100 index was near a
Still, "I think there is a general expectation that the
market is going to continue to rally for the rest of the year...
retail investors are starting to move back in, and I think
that's providing a fair amount of support" said Brad McMillan,
chief investment officer for Commonwealth Financial, based in
Shares of Exxon Mobil Corp led the blue chip Dow
index higher. The stock rose 1.2 percent to $94.32 a day after
Warren Buffett's Berkshire Hathaway Inc
disclosed a new $3.45 billion stake in the world's largest
publicly traded oil company.
FedEx Corp shares added 1.3 percent to $138.19
after regulatory filings showed funds including Daniel Loeb's
Third Point LLC, George Soros' Soros Fund Management LLC and
John Paulson's hedge fund, Paulson & Co all took stakes in the
"Going forward, I'm keeping an eye on the 1,120 area on the
Russell 2000, as small-cap leadership would be a good sign for
risk appetite," said Bryan Sapp, senior trading analyst at
Schaefer's Investment Research in Cincinnati.
The Dow Jones industrial average rose 48.43 points or
0.31 percent to 15,924.65, the S&P 500 gained 2.11 points
or 0.12 percent to 1,792.73 and the Nasdaq Composite
added 5.428 points or 0.14 percent to 3,978.168.
InterCloud Systems Inc shares surged 193 percent to
$7.49 after the cloud and consulting services said its quarterly
revenue rose five-fold to $16.2 million.
Following Twitter's trading debut on the New York
Stock Exchange on Nov. 7, options market makers began pricing
and trading contracts Friday to buy or sell Twitter shares at
various prices in the future.
Data showed New York state's manufacturing sector
unexpectedly shrank this month while U.S. industrial production
fell in October as output at power plants and mines