The Rising Influence of Rising Affluence

[DewDiligence]

Stocks Close at 4-Year High

[Last time I posted this headline (#msg-71706580), it wasn’t quite true because the S&P 500, including reinvested dividends, was only about even with its May 2011 level. Now, including reinvested dividends, the S&P 500 is clearly above its May 2011 level and is higher than it has been at any time since late 200*7*. Has anyone heard from Noriel Roubini lately?]

http://online.wsj.com/article/SB10001424052970203918304577242812623597038.html

›FEBRUARY 24, 2012, 4:25 P.M. ET
By CHRIS DIETERICH

The Standard & Poor's 500-stock index squeaked out its highest close since 2008, as most stocks traded higher after better-than-expected reports on home sales and consumer sentiment.

The Dow Jones Industrial Average fell 1.74 points, or 0.1%, to 12982, after reaching above the 13000 mark earlier in the session. The S&P 500 tacked on 2.28 points, or 0.17%, to 1365.74, its highest close since June 5, 2008.The Nasdaq Composite added nearly seven points, or 0.2%, to 2964.

Technology and utility stocks led the advance, while financial stocks lagged behind. American Express topped the Dow, up 1.1%, while Hewlett-Packard fell 1.3% to weigh on blue chips for the second consecutive session.

Stocks edged higher after upbeat readings on the U.S. economic data front, but gave up gains in the afternoon.

"It's another day with not a lot of catalysts, not a lot of action. On days like today, relatively modest-sized orders can move the market," said Steve Sosnick, equity risk manager at Timber Hill LLC/Interactive Brokers Group LLC.

Data showed U.S. consumers turned more upbeat about the economy at the end of February. The Thomson Reuters/University of Michigan consumer sentiment index rose to 75.3, better than the 73 expected by economists surveyed by Dow Jones Newswires. Sales of new homes fell in January, but managed to beat expectations.

European markets were broadly higher. The Stoxx Europe 600 rose for the first time in four sessions, up 0.3%, as investors focused on firm economic data and earnings as concerns about Greece's debt recede. Data showed that consumer confidence in France rose slightly in February and that Germany's economy contracted marginally during the fourth quarter, in line with expectations. Meanwhile, the Greek Parliament approved a debt-restructuring plan for private bondholders.

Asian bourses also rose. Japan's Nikkei Stock Average rose 0.5% to a 6½-month high, while China's Shanghai Composite added 1.3% to finish a three-month high.

Crude-oil prices [i.e. WTI] climbed to $109.49 a barrel amid fears that cuts in imports of Iranian crude would tighten supplies, while gold prices slipped 0.6%, to $1,775.10 a troy ounce. The dollar rallied against the yen but lost ground against the euro. The yield on the 10-year Treasury note slipped to 1.979%.

In corporate news, American International Group rose 1.7% after the insurer reported a fourth-quarter operating profit late Thursday that was well above estimates, and said it was likely to report sustainable profits in the years ahead. Salesforce.com rallied 9.2% after the business-software maker reported fiscal fourth-quarter earnings and revenue that exceeded forecasts and lifted its full-year revenue outlook.

El Paso rose 1.5% after The Wall Street Journal reported that private-equity firm Apollo Global Management was nearing a deal to buy El Paso's oil-and-gas exploration unit for about $7 billion.

In other deal news, Kenneth Cole Productions ran up 19% after Kenneth Cole offered to take his namesake company private in a deal that values the apparel maker at about $280 million.

Clearwire fell 7.3% after Google, an early investor, said it would sell its entire stake in the wholesale mobile broadband provider at a loss of about $450 million. Clearwire built the nation's first 4G network on a technological standard known as WiMax and provides Sprint Nextel with the speedier data service. Sprint fell 3.6%.

Crocs slid 6.6% after the shoe maker's fourth-quarter earnings topped expectations but its first-quarter earnings outlook was below forecasts.

Chelsea Therapeutics soared 67% after the biopharmaceutical company said a Food and Drug Administration committee recommended the approval of its treatment for neurogenic orthostatic hypotension.

Deckers Outdoor slumped 13% after the footwear maker reported better-than-expected fourth-quarter results and announced a $100 million stock-repurchase program, but provided a disappointing full-year earnings and revenue growth outlook.

Rubicon Technology reported on Thursday that its fourth-quarter profit dropped 94% as weak demand continued to hurt the electronic-component supplier's sales. Shares fell 19%.‹