U.S. stocks fell after a seven-day rally in the Standard & Poor’s 500 Index drove the benchmark gauge to within nine points of its record high yesterday.
CVS Caremark Corp. slid 1 percent after Goldman Sachs Group cut its rating. Costco (COST) Wholesale Corp., the largest U.S. warehouse-club chain, gained 2.1 percent after second-quarter profit rose 39 percent. Yum! Brands Inc. (YUM) jumped 2.3 percent as the owner of the KFC restaurant chain said Chinese sales fell less than estimated.
The S&P 500 fell 0.3 percent to 1,551.93 at 11:19 a.m. in New York, after closing at the highest level since October 2007 yesterday. The Dow Jones Industrial Average lost 0.73 point, or less than 0.1 percent, to 14,446.56, after posting record closes for five straight days. Trading was about 18 percent below the 30-day average at this time of day.
“It’s good news and bad news,” Nathaniel Paull, fund manager and partner at New Amsterdam Partners, said about indexes hitting historic highs. The New York-based firm manages about $2.5 billion. “There’s been certainly a healthy dose of skepticism that the market has been fighting against in this rally, so I couldn’t characterize the market as frothy in any way. That’s helped keep a lid on valuations and things haven’t gotten out of hand.”
More than $10 trillion has been restored to U.S. equity values during the four-year bull market as the S&P 500 more than doubled from the bottom in 2009, fueled by corporate earnings that topped estimates and monetary stimulus from the Federal Reserve. The Dow recouped all its losses from the financial crisis in less than 65 months, more than a year faster than the recovery from the Internet bubble.
‘Interesting Part’
“We’re in an interesting part in the market where there’s still a lot of people underinvested,” Frank Ingarra, head trader at Greenwich, Connecticut-based NorthCoast Asset Management LLC, said in a telephone interview. His firm oversees $1.4 billion. “If you see a spike up, you’re going to see people probably rush in because they feel like they’re missing the dance.”
U.S. equity funds attracted $4.9 billion in the first week of March, the most in more than a month, according to data from EPFR Global.
The S&P 500 is valued at 15.3 times earnings, a 22-month high. That’s still 7.3 percent below an average of 16.6 over the last decade. The Dow is trading at a price-to-earnings ratio of 14.1, the highest level in almost two years and 11 percent below its 10-year average of 15.8. About 85 percent of stocks in the S&P 500 yesterday closed above their average price from the past 50 days.
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CVS Caremark Corp. slid 1 percent after Goldman Sachs Group cut its rating. Costco (COST) Wholesale Corp., the largest U.S. warehouse-club chain, gained 2.1 percent after second-quarter profit rose 39 percent. Yum! Brands Inc. (YUM) jumped 2.3 percent as the owner of the KFC restaurant chain said Chinese sales fell less than estimated.
The S&P 500 fell 0.3 percent to 1,551.93 at 11:19 a.m. in New York, after closing at the highest level since October 2007 yesterday. The Dow Jones Industrial Average lost 0.73 point, or less than 0.1 percent, to 14,446.56, after posting record closes for five straight days. Trading was about 18 percent below the 30-day average at this time of day.
“It’s good news and bad news,” Nathaniel Paull, fund manager and partner at New Amsterdam Partners, said about indexes hitting historic highs. The New York-based firm manages about $2.5 billion. “There’s been certainly a healthy dose of skepticism that the market has been fighting against in this rally, so I couldn’t characterize the market as frothy in any way. That’s helped keep a lid on valuations and things haven’t gotten out of hand.”
More than $10 trillion has been restored to U.S. equity values during the four-year bull market as the S&P 500 more than doubled from the bottom in 2009, fueled by corporate earnings that topped estimates and monetary stimulus from the Federal Reserve. The Dow recouped all its losses from the financial crisis in less than 65 months, more than a year faster than the recovery from the Internet bubble.
‘Interesting Part’
“We’re in an interesting part in the market where there’s still a lot of people underinvested,” Frank Ingarra, head trader at Greenwich, Connecticut-based NorthCoast Asset Management LLC, said in a telephone interview. His firm oversees $1.4 billion. “If you see a spike up, you’re going to see people probably rush in because they feel like they’re missing the dance.”
U.S. equity funds attracted $4.9 billion in the first week of March, the most in more than a month, according to data from EPFR Global.
The S&P 500 is valued at 15.3 times earnings, a 22-month high. That’s still 7.3 percent below an average of 16.6 over the last decade. The Dow is trading at a price-to-earnings ratio of 14.1, the highest level in almost two years and 11 percent below its 10-year average of 15.8. About 85 percent of stocks in the S&P 500 yesterday closed above their average price from the past 50 days.
For more Information Plz log on to www.rpshares.com
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