RSS Feed
May 14th, 2013 
Peter Nolan
US stocks have surged to new all-time closing highs on renewed optimism after a prominent hedge fund manager said the stock rally of 2013 still has more room to go.
The Dow Jones Industrial Average rose 123.57 (0.82 per cent) to a record 15,215.25.
The broad-based S&P 500, also reaching a new high, added 16.57 (1.01 per cent) at 1,650.36.
The tech-rich Nasdaq Composite Index increased 23.82 (0.69 per cent) to 3,462.61.
Analysts said there was little fresh economic news driving the gains, but pointed to bullish investor David Tepper, head of the Appaloosa Management hedge fund group, who told CNBC that the market could still go higher.
“It’s hard to connect the market performance to any news,” said Hugh Johnson of Hugh Johnson Advisors, who cited the Tepper comments.
“There’s not a real good sign that this cycle is going to end any time soon.”
Banks were among the biggest gainers. JPMorgan Chase added 1.2 per cent, Citigroup rose 2.4 per cent, Bank of America jumped 2.8 per cent and Goldman Sachs put on 3.3 per cent.
Some pharmaceutical firms also fared well. Bristol-Myers Squibb rose 3.1 per cent, Gilead Sciences added 3.3 per cent and Biogen Idec jumped 3.2 per cent.
Take-Two Interactive Software, which develops interactive entertainment, rose 0.9 per cent after reporting $299.5 million in revenues, above the $280.4 million forecast by analysts. The company pointed to an “extensive pipeline of next-generation and emerging platform titles in development.”
Western Gas Partners, which owns and operates pipelines and other midstream energy assets, fell 3.5 per cent to $61.00 after pricing a new issue of 6.1 million shares at $61.18, with the proceeds aimed at paying down debt and funding its capital program.
Handbag and accessory firm Coach dipped 0.1 per cent after The Wall Street Journal reported the company is considering acquisitions.
Sony’s US-traded shares shot up 9.9 per cent after The New York Times reported that activist investor Daniel Loeb had begun pushing for a breakup of the struggling Japanese electronics giant.
Bond prices dropped. The yield on the 10-year US Treasury rose to 1.95 per cent from 1.92 per cent late on Monday, while the 30-year jumped to 3.16 per cent from 3.13 per cent. Bond prices move inversely to yields.
Views: 0
Posted in 
