Market Wrap: Dow, S&P 500 Step Further Into Record Territory

Peter Cavanagh/AlamyIt's not just Janet Yellen who can move markets. Mario Draghi, the head of the European Central Bank said he would consider "unconventional measures" to pump money into the EU economy "if needed," and global markets reacted. By MATTHEW CRAFT

NEW YORK -- Solid profits for big companies and optimistic economic news helped nudge the stock market to another record high Thursday.

In European markets, losses turned to gains when the head of the European Central Bank said he was ready to take more ! steps to revive the region's struggling economy. The news knocked the euro to a two-year low against the dollar.

Whole Foods Market (WFM) jumped 12 percent, the biggest gain in the Standard & Poor's 500 index, after reporting higher quarterly earnings than analysts had expected. Whole Foods climbed $4.33 to end the day at $44.34.

"The news is encouraging today," said David Joy, chief market strategist at Ameriprise Financial. "It's especially nice to see the European Central Bank saying the right things."

The S&P 500 (^GPSC) edged up 7.64 points, or 0.4 percent, to close at 2,031.21. That put the benchmark index for most mutual funds up 0.7 percent for the week.

The Dow Jones industrial average (^DJI) rose 69.94 points, or 0.4 percent, to 17,554.47, while the Nasdaq composite (^IXIC) gained 17.75 points, also 0.4 percent, to 4,638.47.

Stronger earnings results from Caterpillar (CAT), Microsoft (MSFT) and other corporate giants have helped push ! the market higher over recent weeks. Third-quarter earnings fo! r S&P 500 companies are on track to rise nearly 9 percent, according to S&P Capital IQ. Before results began to roll in, analysts had estimated earnings would increase 6 percent.

"What's really important about this earnings season is that CEOs are no longer saying, 'We can survive.' They're saying, 'We're expanding our business,'" said JJ Kinahan, TD Ameritrade's chief strategist. "There's a note of optimism we haven't heard in a long time."

After the close of regular trading on Wednesday, Tesla Motors (TSLA) posted results that beat Wall Street's estimates and also reported record deliveries of its flagship sedan, the Model S. Tesla's stock gained $10.25, or 4 percent, to $241.22.

In Europe, Mario Draghi, the head of the European Central Bank, said he would consider more unconventional measures, such as large-scale bond purchases, to pump money into the economy, "if needed." The ECB has come under increasing pressure to provide more support for Europe's r! ecovery and prevent prices from falling. Draghi spoke following the ECB's decision to keep its benchmark interest rate unchanged at 0.05 percent, a record low.

"Draghi has a tendency to cause hysteria in the markets even when he potentially doesn't mean to," said Craig Erlam, market analyst at Alpari. "It only takes the slightest suggestion that further easing is likely, or that [bond-buying] is a possibility, and the markets go wild."

European stock markets turned higher after Draghi's talk. Germany's DAX closed with a gain of 0.7 percent, while the CAC-40 in France gained 0.5 percent. The FTSE 100 index of leading British shares picked up 0.2 percent.

Draghi's comments also helped push the euro lower. The currency fell from $1.252 before he began talking to $1.239, its lowest level since August 2010.

Back in the U.S., government bond prices fell, nudging the yield on the 10-year Treasury note up to 2.37 percent.

In metals trading, gold contin! ued its slump, losing $3.10, or 0.3 percent, to settle at $1,142.60 an ! ounce. Silver slid 3 cents, or 0.2 percent, to $15.41 an ounce, and copper rose a penny, or 0.3 percent, to $3.02 per pound.

Benchmark U.S. crude oil dipped 77 cents to close at $77.91 a barrel on the New York Mercantile Exchange. Brent crude, a benchmark for international oils used by many U.S. refineries, fell 9 cents to close at $82.86 in London.

In other trading on the NYMEX, wholesale gasoline rose 4.3 cents to close at $2.130 a gallon, heating oil rose 2 cents to close at $2.459 a gallon and natural gas rose 21 cents to close at $4.404 per 1,000 cubic feet.

What to Watch Friday:

• The Labor Department reports October hiring and unemployment rate at 8:30 a.m. Eastern time.
• Federal Reserve Chair Janet Yellen delivers a speech on fiscal policy since the financial crisis, in Paris at 10:15 a.m. Eastern time.
• The Federal Reserve reports consumer credit data for September at 3 p.m.

These selected companies are scheduled to release quarterly financial results:

• Brookfield Asset Management (BAM)
• Cooper Tire & Rubber Co. (CTB)
• Extended Stay America (STAY)
• Humana (HUM)
• Isis Pharmaceuticals (ISIS)

• Turn down the thermostat. Who doesn't know that? Throw on a sweater, dress in layers and keep your head and feet warm to make you even more comfortable. In fact, you'll sleep better if those popsicle toes are kept toasty, according to recent sleep research. Try a tip from the Brits and use a hot water bottle or heating pad to warm the bed down by the foot before you retire. Electric blankets are another way to keep warm. 

  ​

  1. Killing it old school
• Most utility companies offer free or low-cost energy audits. As my utility put it when it scheduled mine, "It's free. You paid for it." Most are subsidized by a monthly charge on all customers' bills. I came away with a dozen compact fluorescent bulbs, a low-flow shower head, faucet aerators, a surge protector strip and some practical suggestions on what my bill should look like and how I could get it down. Most interesting I discovered from my energy audit that a gas fireplace or wood stove is cheaper to run than to raise the thermostat to heat the whole house.
  2. Recruit an expert
• Take a page from the WWII playbook and try blackout curtains. They insulate, and they muffle street noise and keep a room darker for sleeping. You buy them at most department stores' home sections or make your own. Lined curtains, extra layers of drapes or even blankets will keep out the cold.
  3. Kill it with softness
• Easy do-it-yourself projects include weatherstripping, window caulking and attaching plastic sheeting on windows and glass doors. For the last (a personal favorite), use-two sided tape and and a blow dryer to pull it taut. It takes me on average a half hour to do a window and less once the ladder is already up. Another very inexpensive fix for exterior drafts is to insulate behind electrical outlets on exterior walls with small foam cutouts or rubber gaskets. This only takes minutes to install.
  4. Recon to the hardware store
• The newest smart thermostats allow you to program away from home on your smartphone, but very affordable models also allow you to set it and forget it, turning down the heat when you are asleep or away. Some utility companies offer rebates on smart thermostats, and some like ConEd (ED) offer free smart thermostats to customers. According to energy.gov, every one degree lower can reduce your heating bill by 1 percent and using a programmable thermostat year round can cut heating and cooling costs by 10 percent.
  5. Pony up for a programmable thermostat
• Another Old Farmer's Almanac tip is that running a humidifier will allow you to feel more comfortable at lower temperatures. It will also help your complexion. Just be careful the moisture level isn't too high or mold and mildew could create a worse problem than dry skin or high heating bills.
  6. Hydrate your home
• According to energy.gov, the worst offenders draining your power and wallet are computers, TV set-top boxes, DVD players, electronic charging units, gaming consoles and kitchen appliances. These phantom loads cost the average American household $100 a year. Turning these off with a convenient surge protector strip can drastically drop a bill. Replacing just 13 incandescent light bulbs with more energy efficient CFL or LED bulbs can save $50 annually. Pacific Gas & Electric (PCG) helpfully suggests that if a device's plug adapter runs warm to the touch or has a continuously running light or display, it is probably an energy vampire.
  7. Slay those energy vampires
• Turn off the lights when you leave the room. Close the flue in the fireplace once the fire is entirely out. Change your furnace filters once a month. Shorten your hot showers. This latter tip saves both water and energy -- especially if you turn your hot water heater down to around 120 degrees.
  8. Channel your mother
• Open your drapes when the sun is shining into a room -- especially south-facing windows. Just imagine where a cat would lay to soak up the warmth and open the curtains to let Old Sol do its job. Close curtains when the sun has moved on. Outside your home, use solar-powered light fixtures where possible.
   
  9. Enlist the sun

• Some ceiling fans can be reversed to draw hot air down and keep you warmer. Check the owner's manual (available online if you've misplaced it) to see if yours has this option. Use rolled up towels or draft-dodgers at the bottoms of doors. If you bake or roast in the winter, leave the oven door ajar to warm the kitchen and shut the door once the oven cools down. Finally, if push comes to shove, most utility companies offer budget billing solutions and heat assistance for senior citizens and lower-income customers.

  10. Think outside the box
• More from Annalisa Kraft-Linder:

Source : http://www.dailyfinance.com/2014/11/06/market-wrap-dow-sandp-500-step-further-into-record-territory/