Market Wrap: S&P 500 Sets a New Record on Job Gains, Earnings

Spencer Platt/Getty Images By KEN SWEET

NEW YORK -- The stock market advanced for a fourth straight day Thursday, pushing the Standard & Poor's 500 index to a record high.

Investors were encouraged by news that the number of people seeking unemployment benefits remains at a multi-year low. Hewlett-Packard (HPQ) rose! after delivering better results, while Sears (SHLD) plunged after reporting that its loss doubled from a year ago.

The S&P 500 (^GPSC) rose 5.87 points, or 0.3 percent, to 1,992.37, four points above the record close the index set on July 24.

The Dow Jones industrial average (^DJI) rose 60.36 points, or 0.4 percent, to 17,039.49. It was the Dow's first close above 17,000 since July 24. The Nasdaq composite (^IXIC) rose 5.62 points, or 0.1 percent, to 4,532.10.

Hewlett-Packard was the biggest gainer among the major indexes. The technology giant rose $1.88, or 5.4 percent, to $37.00 after reporting better-than-expected results and its first sales increase in nearly three years. HP has been undergoing a multi-year restructuring under CEO Meg Whitman, who has laid off employees and cut back businesses that aren't profitable.

Bank of America (BAC) was also among the market's biggest advancers. The company reached a $16.65 billion settlement with the ! Justice Department over its sale of mortgage-backed securities! in the months leading up to the financial crisis. The settlement is by far the largest deal the Justice Department has reached with a bank over the 2008 mortgage meltdown. Bank of America rose 64 cents, or 4 percent, to $16.16.

Stocks opened higher and remained there throughout the day, although buying did pick up in the last hour of trading. Investors were encouraged by a report from the Department of Labor that claims for unemployment benefits, a proxy for the number of people who recently lost their jobs and are looking for work, fell by 14,000 last week to 298,000. The less-volatile four-week average was 300,750, below the average before the Great Recession.

Stocks have been rising steadily all month, due to better economic data and a cooling of tensions in Ukraine, Gaza and Iraq. The S&P 500 is on pace to have its best month since February.

"We've have been able to breathe a sigh of relief that those worst-case scenarios have been avoided, at lea! st for the time being," said Ryan Larson, head of equity trading with RBC Global Asset Management.

Investors now turn to Friday, when Fed Chair Janet Yellen will give a speech at the Fed's annual conference of central bankers and other policymakers in Jackson Hole, Wyoming. Investors will be watching closely for clues into her thinking on the timing of interest rate increases.

Yellen's speech will come two days after the minutes from the Fed's July meeting showed that a majority of the central bank's policymakers believe the U.S. economy is improving enough for the bank to start raising interest rates sooner than previously thought. The debate on when the Fed should begin increasing rates, which have been near zero since 2008, has intensified in recent months as the Fed winds down its other economic stimulus.

Overall, it's been a quiet week for the market. Volumes are low as many Wall Street workers try to fit in their vacations before trading picks up aft! er Labor Day. Thursday was the 10th-slowest trading day of the year and! Wednesday was the fifth-slowest.

Benchmark U.S. crude for October delivery rose 51 cents to $93.96 a barrel in New York. In metals trading, gold fell $19.80 to $1,275.40 an ounce, silver fell eight cents to $19.42 an ounce and copper was little changed at $3.18 a pound.

The yield on the 10-year Treasury note dipped to 2.41 percent from 2.43 percent the day before.

In individual companies:

• Dollar General (DG), Dollar Tree (DLTR) and Family Dollar all fell after Family Dollar(FDO) rejected Dollar General's unsolicited $9 billion buyout offer, citing antitrust concerns. Also weighing on Family Dollar's decision was a deal Family Dollar reached with smaller discount retailer Dollar Tree last month. Dollar Tree fell 72 cents, or 1.3 percent, to $54.28, Dollar General fell 15 cents, or 0.2 percent, to $63.61 and Family Dollar fell 40 cents, or 0.5 percent, to $79.41.
• Sears Holdings lost $2.57, or 7 percent, to $33.38. The owner of Sears and Kmart said it lost $573 million in the last quarter, more than double what is lost the year before. It was the struggling company's ninth straight quarterly loss.

What to Watch Friday:

• Federal Reserve Chair Janet Yellen delivers a speech on labor markets in Jackson Hole, Wyoming, at 10 a.m. Eastern time.
• Ann Inc. (ANN) and FootLocker (FL) release quarterly financial statements before U.S. markets open.

• For many employers, open enrollment season for some benefits happens in October. This usually sneaks up on some people, who scramble to decipher benefits and make elections last minute. Although you won't be able to see the options until the enrollment period opens, take time now to review your benefits. Are you taking advantage of any 401(k) matches? Are your fully funding your Flexible Spending Account? What about employer offered life and disability insurance? (A fun infographic from the Council for Disability Awareness shows your risks). Maximize your benefits and don't leave any money on the table.
  ​1. Make the right choices at open enrollment
• Back-to-school time can be expensive if you're not prepared. Money is spent on clothes, books, supplies and technology -- and that's before the doors to the classroom have even opened. Before hitting the stores, do these two things:

  • Conduct an online search for "coupon code" along with the name of any store you'll be shopping at. Typically you can find some great online deals.
  • Get a list from you class or teacher of specific type of notebook, calculator, etc. required. If you can't get child's "must haves" from ahead of time, buy just the bare minimums until school starts and the list is available.
  2. Spend wisely on back-to-school items
• It's hard to think about the holidays when we're just making it through summer, but now is the time to build up a financial cushion. Set yourself up with an automatic transfer to a separate savings account and participate in the Holiday Fund Money Challenge to build up a savings of $450. How much do you need for the gifts, travel, parties, entertaining, food and other holiday activities you anticipate? Planning will help to ease the stress that comes around the holidays.
  ​3. Plan for the end-of-year holidays
• In lieu of scrambling at the end of the year to make contributions to retirement accounts by Dec. 31, double-check your contributions now and determine if there's room in your cash flow to allow for an increase to possibly max out by year end.
  ​4. Maximize your retirement funding
• Summer is a typically a time of transitions. There are weddings, moves to new homes, possibly a new family addition and more. If summer is the time when these events take place, fall should be the time to take stock of how they're panning out. If you're recently married and haven't already, now is the time to have the money talk with your spouse and make decisions about spending plans, merging (or not merging) accounts, beneficiary updates and more. If you've moved, check out how the new location has affected your cost of living spending in terms of activities, gas costs, groceries and more. Ultimately with any transition, you need to review your spending plan and determine what areas (if any) need to be adjusted.
  5. Consider your transitions
• If you're lucky enough to live in one of the states that actually experiences seasons, fall is the time to prep for energy savings by caulking and weatherstripping doors and windows, turning your thermostat back for a fixed period each day and insulating your attic, basement or outside walls.
  6. Weatherproof your home
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Source : http://www.dailyfinance.com/2014/08/21/market-wrap-sandp500-sets-a-new-record-job-gains-earnings/