S&P 500, Dow register record closes [48th Time this year]

MarketWatch ^ | 12/03/2014 | Anora Mahmudova and Barbara Kollmeyer

[SeekAndFind]

NEW YORK (MarketWatch) — Big gains in energy, materials and industrials sectors, following a rebound in oil and gold prices, helped propel the S&P 500 and Dow Jones Industrial Average to record levels on Wednesday.

The S&P 500 SPX, +0.38% both set an intraday record and closed at a record for the 48th time this year, after gaining 7.77 points, or 0.4%, to 2,074.32.

Most of the gains on the benchmark index came from materials, industrials and energy sector stocks, with all three sectors rising more than 1%. Cimarex Energy Co XEC, +5.12% , Pitney Bowes Inc. PBI, +4.77% and Diamond Offshore Drilling Inc. DO, +3.59% were among top gainers, rising 5.1%, 4.8% and 3.6% respectively.

Analysts cautioned that oil prices and energy names could face headwinds in the future, after spell of buying.

Scott Wren, senior equity strategist at Wells Fargo Advisors, said the fall in prices [related to oil and energy] is likely not done yet and that his research team has an even-weight recommendation on the sector.

The Dow Jones Industrial Average DJIA, +0.18% also set an intraday record and closed at an all-time high for the 33rd time in 2014. The blue-chip index added 33.07 points, or 0.2%, to 17,912.62.

The Nasdaq Composite COMP, +0.39% ended the day 18.66 points, or 0.4%, higher at 4,774.47. Small-cap stocks outperformed large-cap stocks, with the Russell 2000 RUT, +0.90% gaining 10.55 points, or 0.9%, to 1,179.01. However, year-to-date, small stocks have been lagging behind their large counterparts, as the index is up only 1.3%, compared to a 12.2% gain in the S&P 500.

[roadcat]

Think of it as a bucket with water in it. You’re pouring water in, but a leak at the bottom is causing water to be lost. Water is being lost at a certain rate, and the level of the water gets ever lower. If you increase the flow of water being poured in, you’re still losing water from the leak at the same rate, but the level is declining at a slower rate. The dollar can grow stronger to slow the decline in value. But it is still losing value. As you pointed out, it is gaining strength against other nations’ currency (except for the most part China, which is growing faster every year except this one). Value of currency is falling everywhere due to debt. The U.S. is in better shape than most, because others aren’t growing stronger. I know, it’s strange. Thanks for the good comments.

[thackney]

The dollar has been gaining value since summer. Individual products may have gone up in price, but the dollar is stronger.

[roadcat]

I’ll give up; we’re talking two different languages and can’t persuade the other. Will just say that my father could support five kids on a low paying job, without my mom working, bought a house fully furnished for $6000, and fed us well. That was the 1950s. He didn’t make $10,000 until 1970. Now young couples with good salaries can’t afford a house, have only 1 or 2 kids (if at all), and both have to work. The dollar may have become stronger this summer, but its value depends on how you look at it. There are quite a few products that went up in price, not just a few. Costs are rising faster than our ability to deal with them. That’s where we are losing value. You can have the last word. Cheers, my friend.

[thackney]

The typical couple today would consider the 1950 house, along with the TV’s, appliances and cars, to be beneath them. We put to much value on stuff and not enough on family.

My wife stayed home from the birth of our first child 18 years. I usually had a good job but not always. We choose to do without some stuff and spent more time with the kids.

When I hear claims of most one incomes cann9t make it, I know most people in this country don’t know what poor really is.

Even today, making very good money, I still turn a crank handle to put down the windows of my truck. I don’t need the fancy stuff.