Stocks waiver after seven straight gains
ASSOCIATED PRESS March 12, 2013 8:50AM
FILE - In this Friday, March 1, 2013 file photo, Trader Edward Schreier works on the floor of the New York Stock Exchange. World stock markets edged off recent highs in uneven trading Tuesday March 12, 2013 as worries grew about China's recovery and Europe's doldrums. (AP Photo/Richard Drew)
Updated: March 12, 2013 10:50AM
NEW YORK — Stock indexes wavered between small gains and losses on Wall Street following a seven-day rally.
The Dow Jones industrial was down two points, or 0.01 percent, at 14,445 as of 11:08 a.m. EDT.
The Standard & Poor’s 500 was down four points, or 0.3 percent, at 1,551. The Nasdaq composite dropped 17 points, or 0.5 percent, to 3,236.
The stock market has surged this year as investors became encouraged by a recovery in the housing market and a pickup in hiring. Strong corporate earnings and continuing economic stimulus from the Federal Reserve are also supporting demand for stocks.
The Dow has gained 10.3 percent so far in 2013, and last week it surpassed its previous all-time high of 14,164.53. The S&P 500 has risen 9 percent this year and is less than 1 percentage point away from its record close of 1,565.15.
Peter Cardillo, chief market economist at Rockwell Global Capital, was among those saying investors should expect a pause in the market’s advance.
“Nothing goes up forever,” Cardillo said. “We will be headed for a correction somewhere along the line.”
Markets were broadly higher in Europe. Italy easily sold (euro) 7.75 billion ($10 billion) in 12-month bonds, though at slightly higher interest rates. It was the first test of market sentiment since Fitch downgraded the country’s credit rating on Friday due to political uncertainty there.
The Dow’s biggest wobble this year came on Feb. 25, when it lost 1.6 percent after inconclusive results from Italian elections pushed the country toward political gridlock, threatening its ability to follow through on unpopular budget cuts demanded by its European neighbors. That gave investors a flashback to last spring, when a flare-up in Europe’s debt crisis sent markets spiraling lower in the U.S. and Europe.
The yield on the 10-year Treasury note, which moves inversely to its price, fell to 2.03 percent from 2.06 percent.
Among stocks making big moves:
— Yum Brands Inc. rose $1.47 to $69.31 after the company announced a smaller-than-expected drop in its sales in China for the months of January and February following a food scare over its chicken suppliers.
— VeriFone Systems gained $1.58 to $22.05 after the company, a leading maker of terminals for electronic payments, said late Monday that its CEO is stepping down after recent stumbles cut the company’s stock price nearly in half.
— Software company Red Hat fell $2.06 to $51.07 after Citigroup cut its rating on the company to “neutral” from “buy” on its growth outlook and lowered its price target on the stock from $64 to $56.
— Costco rose $2.64 to $105 after reporting that its fiscal second-quarter net income climbed 39 percent. The discount retailer pulled in more money from membership fees, its sales improved and it also recorded a large tax benefit. Even without the tax benefit the results were better than analysts had expected.