Get breaking news alerts via email

Click here to manage your alerts
FILE - In this Monday, March 8, 2010, file photo, a sign for Wall Street is shown near the New York Stock Exchange. Global shares were mixed Wednesday Aug. 27, 2014 after the latest record close for the Standard & Poor's 500, with Europe off to a shaky start despite a strong day in Asia. (AP Photo/Mark Lennihan, File)
Stock markets lost a little of their momentum
Wall Street » Smith & Wesson Holding shares fell 14 percent after gunmaker lowered targets.
First Published Aug 27 2014 08:41 am • Last Updated Aug 27 2014 06:18 pm

The rally that propelled the Standard & Poor’s 500 index above a record 2,000 lost a little bit of momentum Wednesday.

The S&P 500 rose 0.1 point to 2,000.12, with about the same number of stocks rising as falling. About 4.2 billion shares changed hands across U.S. exchanges, the lowest volume since July 3, data compiled by Bloomberg show.

Join the Discussion
Post a Comment

"The market is not overly expensive, not cheap either," Ethan Anderson, senior portfolio manager at Rehmann Financial in Grand Rapids, Michigan, said by phone. His firm oversees $1.5 billion. "In the absence of strong corporate earnings, you are not necessarily going to see a huge surge in equities over the next 12 months. But the little notch up, on a regular basis, you’re likely to see continue."

Global markets are surmounting crises in Ukraine, the Gaza Strip and Iraq as investors renew bets that stimulus will revive growth. Rallies from Brazil to Japan and the U.S. gauge’s first trip above 2,000 have sent the value of global equities to a record $66 trillion.

The S&P 500 is up almost 5 percent since Aug. 7, boosted by speculation the Federal Reserve will keep interest rates low as the economy strengthens. European Central Bank President Mario Draghi has also signaled policy makers may consider introducing an asset-buying plan.

The U.S. equity benchmark has seen gains in 11 of the past 14 days. It trades at 18 times the reported earnings of its companies, near the highest level since 2010.

The Dow Jones industrial average added 15.31 points to 17,122.01. The Nasdaq composite index was little changed after a four-day rally. Among industries in the S&P 500, telephone and utility stocks had the biggest gains, while energy, financial and technology shares fell the most.

"In the U.S., you’re seeing businesses do very well," Doug Foreman, chief investment officer at Kayne Anderson Rudnick Investment Management in Los Angeles, said in a telephone interview. His firm oversees about $9 billion. "We’re in a situation where there are still some macro risks, but they’re overwhelmed by the micro, which is surprisingly good."

Tiffany & Co. added 1 percent after posting second-quarter profit that topped analysts’ estimates and raised its earnings forecast for the year as higher prices boosted revenue.

Smith & Wesson Holding tumbled 14 percent after the gunmaker cut its full-year sales and profit forecast amid declining demand. Chico’s FAS, a women’s clothing retailer, slumped 4.6 percent on lower-than-estimated sales.

story continues below
story continues below

Michaels jumped 9.3 percent as the arts and crafts retailer reported second-quarter earnings that topped analysts’ estimates. Express increased 13 percent after the apparel chain raised its full-year profit forecast.

Best Buy, the world’s largest electronics chain, rose 6.3 percent after posting second-quarter profit that topped analysts’ estimates, helped by lower costs.

"U.S. markets continue to defy geopolitical worries," Richard Hunter, the head of equities at Hargreaves Lansdown in London, wrote in an email. "Many of the blocks are in place for the equity markets to make further progress."

Copyright 2014 The Salt Lake Tribune. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Top Reader Comments Read All Comments Post a Comment
Click here to read all comments   Click here to post a comment

About Reader Comments

Reader comments on sltrib.com are the opinions of the writer, not The Salt Lake Tribune. We will delete comments containing obscenities, personal attacks and inappropriate or offensive remarks. Flagrant or repeat violators will be banned. If you see an objectionable comment, please alert us by clicking the arrow on the upper right side of the comment and selecting "Flag comment as inappropriate". If you've recently registered with Disqus or aren't seeing your comments immediately, you may need to verify your email address. To do so, visit disqus.com/account.
See more about comments here.
Staying Connected
Contests and Promotions
  • Search Obituaries
  • Place an Obituary

  • Search Cars
  • Search Homes
  • Search Jobs
  • Search Marketplace
  • Search Legal Notices

  • Other Services
  • Advertise With Us
  • Subscribe to the Newspaper
  • Access your e-Edition
  • Frequently Asked Questions
  • Contact a newsroom staff member
  • Access the Trib Archives
  • Privacy Policy
  • Missing your paper? Need to place your paper on vacation hold? For this and any other subscription related needs, click here or call 801.204.6100.