This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

S&P 500 Quietly Breaks Record High as Markets Drift Up

Stocks in this article: ^DJI ^GSPC ^IXIC BBRY APP ORCL RAD

NEW YORK ( TheStreet) -- Markets made up for slight losses earlier in the day with the Dow Jones Industrial Average and S&P 500 ending higher and the Nasdaq off only slightly. 

By market close, the Dow crept 0.09% higher to 16,921.46 and the Nasdaq slipped 0.08% to to 4,359.33. The S&P closed its second consecutive day of record-breaking highs, though up only 0.13% to 1,959.48.

Worries about Iraq continued to dampen general upbeat sentiment most recently brought on by the Federal Reserve's support interest rate guidance on Wednesday and a drop in U.S. jobless claims released earlier in the day.

Schaeffer's Investment Research senior equity strategist Joe Bell believes recent gains have a solid foundation, rather than being based on unsupported confidence. "We generally see these big market tops when you have that overwhelming amount of optimism and euphoria. We continue to see signs that we're not, from a longer-term perspective, seeing that euphoria or over-the-top optimism," he told TheStreet. 

Peter Cardillo, chief market economist at Rockwell Global Capital, also believes the bull-market fundamentals remain sound. His short-term intermediate objective is for the S&P 500 to remain at 1,965 even as fears over the situation in Iraq grow, given that leading indices have not departed far from their record highs amid the turmoil.

Remarks from the Federal Open Market Committee infused U.S. markets with renewed vigor on Wednesday. The benchmark index S&P 500 booked a new record high, fueled by the Fed's assurances this recovery still has legs. Federal Reserve Chair Janet Yellen indicated the world's most powerful central bank will keep interest rates low for some time even as it pared its monthly bond buying program by $10 billion to $35 billion.

Initial jobless claims for the week ended June 13, fell 6,000 to 312,000. The Philadelphia Fed's manufacturing index jumped to 17.8 in June from 15.4 in May. It's the highest reading of activity since last September.

The instability in Iraq, however, was offsetting some of the cheerfulness. President Obama said Thursday he would dispatch as many as 300 military advisers to the country to stabilize the volatile political landscape. Addressing reporters, Obama reaffirmed his stance that he would not send soldiers to quash the conflict.

In corporate news, BlackBerry (BBRY) spiked 9.7% as a narrower quarterly net loss indicated its turnaround plans were working. First-quarter net losses of 11 cents a share compared to analysts' estimates of losses of 26 cents a share. The company posted net losses of 13 cents a share in the year-ago period.

One of the most actively traded stocks on Thursday, Rite Aid (RAD), was sinking 3.5% after the drugstore chain reported first-quarter profits half that of a year earlier.

The board of American Apparel (APP) voted to oust founder Dov Charney as chairman and notified him of its intent to remove him as president and CEO, following a contractually required 30-day period before he can be terminated. Shares surged 6.9% to 68.4 cents.

After the bell, shares of Oracle (ORCL) are sinking 6.2%. The company reported earnings of 92 cents a share and revenue of $11.32 billion in its fourth quarter, below Wall Street estimates of 95 cents a share and $11.48 billion.

-- By Keris Alison Lahiff and Andrea Tse in New York

June 19 Premarket Briefing: 10 Things You Should Know

European Stocks Stage a Relief Rally

S&P 500 Lands New Record High as Fed Says Recovery Still Has Legs

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,733.69 +376.82 2.17%
S&P 500 2,053.11 +40.22 2.00%
NASDAQ 4,732.5340 +88.2220 1.90%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs