Dow Jones: 12,268.19 (–5.07) S&P 500: 1,332.32 (+3.17) Nasdaq: 2,817.18 (+7.74)MOST US stocks rose yesterday, sending the Standard and Poor's 500 Index to a 32-month high, as optimism about Egypt's democratic transition plan and China's jump in exports overshadowed concern valuations have climbed too far.
“This is a profit-driven recovery on top of good economic figures,” said Jeffrey Saut, chief investment strategist at Raymond James and Associates in St Petersburg, Florida.
“Does the overbought condition change the fundamental backdrop? I’d say not at all. China has been giving indications that growth will not slow. In Egypt, we see some relief but a lot depends on whether they do what they’re planning to do,” he said.
The Dow Jones industrial average dipped 5.07 points, or 0.04 per cent, to 12,268.19.
The Standard & Poor’s 500 Index rose 3.17 points, or 0.24 per cent, to 1,332.32.
The Nasdaq Composite Index gained 7.74 points, or 0.28 per cent, to 2,817.18.
The MSCI Emerging Markets Index rose 1.3 per cent after Egypt’s ruling army council said it aims to hand power to a democratically elected government within six months.
China Trade Stocks rose in Asia after China reported a smaller than forecast trade surplus of about $6.5 billion in January.
Copper rallied after a report of higher imports in China, the world’s largest user of industrial metals.
Schlumberger, the world’s largest oilfield services provider, gained 2.4 per cent to $92.24.
Freeport, the biggest publicly traded copper producer, rallied 4.9 per cent to $56.14.
Kellogg advanced 0.7 per cent to $53.48 after regulatory filings showed that billionaire Peltz’s hedge funds bought a $150 million stake last quarter.
Netflix jumped 7.1 per cent to $247.55. The DVD-rental and streaming company had its share-price estimate increased to $316 from $224 by Caris.
Wal-Mart declined 1.6 per cent to $54.80. The biggest retailer was cut to “neutral” from “overweight” at JPMorgan.
GameStop fell 2 per cent to $19.87 after the video-game retailer was downgraded at Piper Jaffray.
Clorox slipped 6.2 per cent to $66.85. – (Bloomberg)
