By Kate Gibson, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks on Wednesday finished
mostly higher, with the blue-chip Dow Jones Industrial Average
extending its record rise after an encouraging report on
private-payrolls growth.
The S&P 500 index -- a broader gauge of the stock market --
posted slight gains, ending the session 24 points from its all-time
closing high recorded in October of 2007.
The market's bull run has come amid central-bank monetary easing
both in the United States and overseas, with the European Central
Bank and Japan's central bank among those participating.
"I wonder is it counter-intuitive optimism growing from Japan to
the U.S. that they are going to keep the punch bowl out there.
Central bankers are all in; how can you collectively fight all of
them, if you're betting against them, that's a big bet to make,"
said Nick Raich, CEO of the Earnings Scout, an independent
microeconomic research firm specializing in corporate earnings
trends in Cleveland, Ohio.
A day after closing at an all-time high, the Dow Jones
Industrial Average (DJI) furthered its gains, rising as much as 66
points and ending up 42.47 points, or 0.3%, at 14,296.24. Read a
commentary piece by the Charles Schwab CEO on whether it's time to
get into the market or get out.
Materials and financial companies fared best among the 10 major
industry groups on the S&P 500 index, which added 1.67 point,
or 0.1%, to 1,541.46, leaving it 24 points shy of its record-high
finish hit in October 2007. Read a story on the VIX's track record
as a contrarian indicator.
"We're approaching all-time highs because we're at all-time
levels of profit," said Raich. "Earnings growth for the S&P 500
(SPX) reaccelerated form the third to fourth quarter, but there is
going to be a temporary slowdown in first quarter," he added.
The Nasdaq Composite (RIXF) lost 1.77 point, or 0.1%, to
3,222.37, hit in part by a 1.3% decline in shares of Apple Inc.
(AAPL). Read: Apple price targets cut.
For every two stocks falling nearly three gained on the New York
Stock Exchange, where almost 684 million shares traded. Composite
volume approached 3.7 billion.
Data showed a welcome rise in private-sector payrolls in
February, a less-than-expected drop in U.S. factory orders the
month before and evidence of slowing retail sales from the Federal
Reserve's Beige Book.
"I am getting worried about a temporary growth scare coming up,"
Raich said.
Ahead of the open, stock-index futures extended gains after
Automatic Data Processing Inc. reported private-sector jobs rose by
198,000 last month, exceeding expectations. The January jobs data
were revised higher. See: Private-sector jobs growth beats
expectations.
"It all looks good; the numbers are showing roughly 200,000 now
for the last two months," said Raich.
Other Wednesday data had the government reporting orders for
U.S. factory goods in January declined by the most in five months,
hit by weak appetite for military hardware and commercial
aircraft.
Among individual stock movers, Staples Inc. (SPLS) slid 7.2%
after the office-supplies retailer projected profit beneath
estimates.
VeriFone Systems Inc. (PAY) added 8.6% after the manufacturer of
credit-card terminals reported earnings that topped
expectations.
Shares of Best Buy Co. (BBY) rose 1.9% after Jefferies Group
Inc. hiked its view on the retailer to buy from hold.
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