Tapering views reflected in gold’s bounce; dollar’s decline boosting multinationals
NEW YORK (MarketWatch) — U.S. stocks climbed on Thursday, with the S&P 500 gaining a day after halting a run to a record high, with equities picking up steam along with large-cap companies such as Apple Inc. and Exxon Mobil Corp. on signs of an improving global economy.
“If these companies are strengthening,” then the rest of the market will too, said Dan Greenhaus, chief global strategist at BTIG LLC. Beyond iPhone maker Apple (NASDAQ:AAPL) and oil producer Exxon Mobil (NYSE:XOM) , he listed Wal-Mart Stores Inc. (NYSE:WMT) and General Electric Co. (NYSE:GE) as bolstering the overall market.
The Dow Jones Industrial Average (DJI
JIA) gained 95.88 points, or 0.6%, to 15,509.21.
The S&P 500 index (SNC:SPX) climbed 5.69 points, or 0.3%, to 1,752.07. Consumer discretionary led sector gains among the S&P 500’s 10 major sectors, while utilities paced the declines.
The Nasdaq Composite (NASDAQ:COMP) added 21.89 points, or 0.6%, to 3,928.96.
“We’re just getting back a little bit of what we gave up yesterday. There is no impetus for the Federal Reserve to begin its tapering programs; prospects are now deferred well into the first quarter of 2014,” said Mark Luschini, chief investment strategist at Janney Montgomery Scott.
“And, we’re actually starting to get some numbers on the revenue side that are better than expected,” said Luschini, pointing to AutoNation Inc. (NYSE:AN) and 3M Co. (NYSE:MMM) as examples. “Since the start of July, the dollar has fallen about 6%, and large multi-nationals are getting a bid as a consequence of that,” he added.
On Thursday, the dollar (NYE XY) edged lower against the currencies of major U.S. trading partners, including the euro (ICAP:EURUSD) and the yen (ICAP:USDJPY) .
Ford Motor Co. (NYSE:F) climbed 1.4% after the auto maker reported earnings that topped estimates. Symantec Corp.’s (NASDAQ:SYMC) shares fell almost 13% after the security-software provider projected sales and profit beneath Wall Street’s expectations.
For every three stocks falling, more than four rose on the New York Stock Exchange, where 716 million shares traded. Composite volume approached 3.6 billion.
Gold futures (CNS:GCZ3) rose $16.30, or 1.2%, to $1,350.30 an ounce. Borrowing costs reflected in the 10-year Treasury note (ICAPSD:10_YEAR) yield rose 1 basis point to 2.514%.
“Gold is firming a little bit, which is a signal of deferred tapering prospects, and bond prices are reacting in the same vein. They are all saying the same thing, that from what we’ve seen, there is no impetus for monetary policy to shift. Given gold’s positive view of that, and the bond market’s complacent view of that, equity prices remain well bid,” Luschini offered. http://www.marketwatch.com/story/gold-rises-a...=afterbell
