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Fed powers Wall St to new records

Wednesday, April 10, 2013 - 02:22

April 10 - Summary of business headlines: Dow, S&P 500 rally to record peaks as Fed minutes show policymakers won't alter stimulus until jobs recover; Facebook and General Motors advertising buddies again; Hospital stocks tumble after warning; Gold slumps as Cyprus dumps. Conway G. Gittens reports.

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A new milestone for the S&P 500 and the Dow as financials and technology lead a solid Wall Street rally. The Dow enjoyed a triple-digit surge to a record close of 14,802. The S&P 500 closed at the historic peak of 15-87-73, and the tech heavy Nasdaq surged to a 12-year high. Traders point to the early release of minutes from the Federal Reserve's March meeting for Wednesday's rally. While there was debate over an exit strategy from the Fed's 85-billion-dollar-a-month bond buying program, the committee continue to pin that exit on a stronger labor market, and with the latest employment report nothing to get excited about - investors bet Fed chief Ben Bernanke won't be ending that strategy anytime soon. The Fed is keeping a bid under this market and Ryan Detrick of Schaeffer's Investment Research is keeping his bullish stance. He says that charts, dating back to 1972, show a historical pattern of what happens the first time the S&P 500 hits a new all-time high in a calendar year. SOUNDBITE: RYAN DETRICK, SENIOR TECHNICAL STRATEGIST, SCHAEFFER'S INVESTMENT RESEARCH (ENGLISH) SAYING: "What I'm saying is when we make new highs the market actually does better one month, three months, six months, twelve months later making a new high. People say 'a new high, we are going to pullback'. Well the data we just looked at says - maybe not. '07 was a peak and then we crashed. We know that -made a new high and then we crashed - but if you look at the other new highs before '07 it's actually a bullish time frame." Facebook rallied after General Motors says it will once again run ads on the social network, focusing on mobile users. The return came on the same day Facebook was set to launch a new tool that will better help advertisers target ads on the social network by using data provided by third party marketers. Shares of Facebook - jumping less than 4 percent amid signs of progress in its mobile strategy. Hospital stocks, however, were unhealthy for the bulls. Health Management Associates lowered its outlook for the year. Patient admissions are not living up to expectations despite changes in health care laws. On to Europe now, Cyprus is planning to dump 400 million euros worth of gold onto the market in order to finance its bailout. Banner day though for stocks. Germany surged more than 2 percent. France rallied 2 percent. London gained more than 1 percent.

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Fed powers Wall St to new records

Wednesday, April 10, 2013 - 02:22