The Clinton Herald, Clinton, Iowa

Business & Technology

November 19, 2013

Stocks hit round-number milestones, then slip

(Continued)

“Greed is taking over from fear,” McMillan says.

It’s not clear whether stocks have become expensive yet or are just fairly priced. One measure of value, the ratio of stock prices to forecast earnings, is at 15 for S&P 500 companies. That is slightly below the 15-year average of 16.2, according to FactSet, a data provider.

Including this year’s gains, the S&P 500 is up 165 percent from the start of the current bull market in March 2009, 56 months ago.

Bull markets dating back to the Great Depression have averaged 57 months, according to S&P Capital IQ, a research firm, however the duration of bull markets has varied greatly over time. The bull market of the 1990s lasted 113 months, for instance.

Investors have been betting that Fed stimulus policies are not likely to change soon. Janet Yellen, the nominee to succeed Ben Bernanke as Fed chairman, indicated in congressional testimony last week that she was prepared to keep interest rates low to help the economy.

Investors were also encouraged by a Chinese government announcement late Friday that it plans to open state industries to greater competition and allow more foreign investment. Many big U.S. companies have come to rely on emerging markets like China to boost revenue. About half of the revenue in the S&P 500 comes outside the U.S.

The S&P 500 closed down 6.65 points, or 0.4 percent, at 1,791.53. The Dow rose 14.32 points, or 0.09 percent, to 15,976.02.

The Nasdaq composite fell 36.90 points, or 0.9 percent, to 3,949.07.

Among stocks making big moves, Boeing rose $2.28, or 1.7 percent, to $138.36, the biggest gain in the Dow. The plane maker booked $100 billion in orders at the opening of the Dubai Airshow.

Tyson Foods jumped 65 cents, or 2.3 percent, to $29.42. The food company said its net income surged 41 percent in the latest quarter on higher sales of beef and chicken. The company raised its dividend 50 percent.

The yield on the 10-year Treasury note fell to 2.67 percent from 2.71 percent.

------

AP Business Writers Steve Rothwell and Stan Choe contributed to this report.

Text Only
Business & Technology
  • Earns United Continental [Duplicate] United Airlines posts 2Q profit, reversing 1Q loss CHICAGO (AP) — United Airlines is making money after a slow start to the year.The airline’s net income in the second quarter hit $789 million, topping Wall Street expectations and marking a turnaround from the first quarter when United was the only m

    July 25, 2014 1 Photo

  • GM profit 2Q falls 85% on recall costs DETROIT (AP) — Recall expenses chopped $1.5 billion from General Motors’ bottom line in the second quarter, as it added up the costs of repairs for nearly 30 million cars and set aside funds to compensate victims of small-car crashes.The automaker, w

    July 25, 2014

  • Taiwan plane crash photo Air travel a leap of faith for passengers WASHINGTON (AP) — Airline travel requires passengers to make a leap of faith, entrusting their lives to pilots, airlines, air traffic controllers and others who regulate air travel.Even after a week of multiple tragedies in worldwide aviation, “There

    July 25, 2014 1 Photo

  • Technology plays key part in battling police brutality (with VIDEO)

    Allegations of police brutality are nothing new -- as long as there has been law enforcement, citizens have registered claims that some officers cross the line. But in the last few years, the claims of excessive force are being corroborated with new technology from cell phone cameras, police dash-cams and surveillance videos. 

    July 24, 2014

  • Facebook continues moneymaking trend

    Facebook seems to have figured out - for now at least - the holy grail for all media right now: how to make money selling mobile ads.

    July 24, 2014

  • Has the iPad lost its swag?

    The company reported this week that sales of its sleek, pricey tablet were down 19 percent from last quarter and 9 percent year-over-year.

    CEO Tim Cook tried to reassure investors that Apple's new partnership with IBM to sell its devices to IBM's corporate customers will help make iPads ubiquitous in the workplace.

    July 24, 2014

  • Stewart McCaskill photo McCaskill settles into new role at shoe store CLINTON — An Oklahoma boy at heart, Stewart McCaskill is settling into Clinton and Brown’s Shoe Fit.The 35-year-old has worked with the Brown’s Shoe Fit company for seven years. His brother-in-law, who manages a Brown’s in Colorado, brought Stewart i

    July 24, 2014 1 Photo

  • Earns Mcdonalds [Duplicate] McDonald's profit slips; U.S. sales decline OAK BROOK, Ill. (AP) — McDonald’s Corp. said its profit slipped in the second quarter as sales in the U.S. continued to flag.The world’s biggest hamburger chain has been struggling to boost sales in its flagship market amid intensifying competition,

    July 23, 2014 1 Photo

  • SEC poised to end $1 a share for some money funds WASHINGTON (AP) — Regulators are expected to vote Wednesday to end a longtime staple of the investment industry — the fixed $1 share price for money-market mutual funds — at least for some money funds used by big investors.The idea is to minimize the

    July 23, 2014

  • China McDonald's KFC [Duplicate] China meat scandal hits Starbucks, Burger King BEIJING — A suspect meat scandal in China engulfed Starbucks and Burger King today and spread to Japan where McDonald’s said the Chinese supplier accused of selling expired beef and chicken had provided 20 percent of the meat in its chicken nuggets.C

    July 22, 2014 5 Photos

Facebook