Quantcast
Get breaking news alerts via email

Click here to manage your alerts
FILE - The New York Stock Exchange is shown, Tuesday, Aug. 9, 2011 file photo taken in New York. Global stock markets were muted Thursday Aug. 28, 2014 ahead of U.S. economic data and possible policy announcements from Japan.(AP Photo/Mark Lennihan, File)
Stocks end higher following strong run in August
Wall Street » Standard & Poor’s 500 delivers its fourth record high in five days.
First Published Aug 29 2014 10:58 am • Last Updated Aug 29 2014 03:34 pm

The Standard & Poor’s 500 index delivered its fourth record high in five days Friday, ending with the biggest monthly gain since February.

The milestone-crushing run capped a week when the S&P eclipsed the 2,000-point mark for the first time. And the index ended August with a gain of 3.7 percent.

Join the Discussion
Post a Comment

Six months of solid job gains, strong company earnings and a bevy of corporate deal news contributed to the rally, part of a bull market that’s been rumbling on for more than five years.

The market appeared ready for a correction at the end of July, but the downturn didn’t last long. For most of August, stocks have managed to shake off geopolitical conflicts from Ukraine to Gaza and Iraq.

"The market has a good underlying tone," said Mike Levine, portfolio manager of Oppenheimer Equity Income Fund. "People feel like the economy is gaining some strength and the job market is getting better and corporate earnings should be pretty good."

Even in a quiet day of trading ahead of the Labor Day holiday, stocks eked out a gain.

The indexes opened higher, but eased soon after, as investors got the news that consumer spending fell and income growth slowed in July.

Traders also had their eye on the conflict in Ukraine, as a group of European Union foreign ministers accused Russia of invading the eastern region of the country and said Moscow should be punished with more economic sanctions.

The markets began to recoup some losses by midmorning, however, when a gauge of consumer sentiment showed greater optimism in August, particularly among higher-income groups. Some better-than-expected company earnings also lifted stocks.

Overall, the indexes wavered between small gains and losses throughout the afternoon.


story continues below
story continues below

"We’re seeing a listless, pre-holiday market," said Drew Wilson, an investment analyst at Fenimore Asset Management.

The S&P 500 index finished up 6.63 points, or 0.3 percent, to 2,003.37. It closed above 2,000 for the first time on Tuesday and has gained 8.4 percent this year.

The Dow Jones industrial average gained 18.88 points, or 0.1 percent, to 17,098.45 on Friday, while the Nasdaq composite added 22.58 points, or 0.5 percent, to 4,580.27.

Stocks rose broadly, with all 10 sectors in the S&P 500 index higher for the day, led by utilities.

The gains marked the index’s best August since 2000.

"It’s been a good August," said Linda Duessel, senior equity market strategist at Federated Investors. "I imagine it’s the end of the month and people closing their books are saying ‘I better show I’m invested, we had a brand-new high this week,’" she said.

Nevertheless, some investors may be more hesitant next month. September is widely considered the stock market’s worst.

Since World War II, the S&P 500 index has ended the month with a loss half of the time. Recently, however, September has been good to investors. The S&P 500 has turned in a September loss just twice in the last decade: in the depths of the financial crisis in 2008 and following a fight over raising the government’s borrowing limit in 2011.

Last year, investors saw an array of threats lined up after Labor Day, including a fight over the federal budget and a possible U.S. attack on Syria. The result? The S&P 500 gained 3 percent in September.

Elsewhere in financial markets, bond prices were little changed. The yield on the 10-year Treasury note held at 2.34 percent.

In metals trading, gold slipped $3 to $1,287.40 an ounce, silver fell 14 cents to $19.40 an ounce and copper rose a penny to $3.14 a pound.

Next Page >


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
Videos
Jobs
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.