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Dow closes above 16k

Thursday, November 21, 2013 - 02:09

Nov. 21 - Summary: Dow 16,000; labor market improving; inflation in check; Target lowers profit forecast; US to sell remaining GM shares. Bobbi Rebell reports.

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Dow 16,000 a reality: the index closing above the benchmark level for the first time ever. At the Reuters Global Investment Summit, Margi Patel, Senior Portfolio Manager at Wells Capital Management says the best place to invest is equities. SOUNDBITE: MARGARET PATEL, SENIOR PORTFOLIO MANAGER, WELLS CAPITAL MANAGEMENT (ENGLISH) SAYING: "I think we have sustainable growth, it may be low but I think it's very, very sustainable across the board and the surprise might be the economy accelerates and secondly, the returns from all areas of the bond market are going to be so low they really provide very little competition so equities don't have to do much at all to be better than any class of the bond market. " The major indexes rebounding after three days of losses on new data showed stronger labor market conditions and inflation remaining in check. Separate data showed U.S. manufacturing rebounded this month after hitting a one year low in October. Output grew at its fastest pace in nine months. In Europe, shares edged lower - worries resurfaced over the eventual scaling back of economic stimulus measures. Federal Reserve Vice Chair Janet Yellen is one step closer to the top job at the Fed. The Senate banking panel approved her nomination. A full Senate confirmation is expected in December. Her confirmation path was made smoother after Senate Democrats forced through a rule change, reducing the number of votes needed to end filibusters against presidential nominees. Pandora reported better-than-expected revenue. It was up 50 percent in the third quarter thanks to strong mobile advertising. Earnings were in line with estimates. Gap reported earnings that were better-than-expected thanks to modest sales gains. The retailer which also owns Old Navy and Banana Republic confirmed its profit forecast for the year and announced a billion dollar share buyback. Target stock took a hit. The discount chain lowered its full year profit forecast after comparable sales rose less than expected in the third quarter. The U.S. is going to sell its remaining shares of General Motors by the end of the year. If that happens, it would result in a $10 billion loss on the automakers 2009 bailout.

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Dow closes above 16k

Thursday, November 21, 2013 - 02:09