Posted on 08/25/2014 10:53:27 AM PDT by SeekAndFind
U.S. financial markets moved higher in midday trading Monday, edging the Standard & Poor's 500 index past 2,000 points for the first time. Investors shrugged off lackluster data on new home sales and focused instead on the latest round of corporate deals. Burger King soared on news it was in talks to buy Tim Hortons of Canada.
KEEPING SCORE: The Standard & Poor's 500 index rose 12 points, or 0.6 percent, to 2,001 as of 12:05 p.m. Eastern. The Dow Jones industrial average added 109 points, or 0.6 percent, to 17,110. The Nasdaq composite rose 28 points, or 0.6 percent, to 4,566.
RECORD TERRITORY: The S&P 500, a widely followed barometer of the U.S. stock market, crossed above 2,000 in the first hour of trading Monday. The S&P 500 closed above 1,000 points for the first time in February 1998.
"Closing above that level is going to be the big test," said JJ Kinahan, chief strategist at TD Ameritrade. "The S&P 500 overall is a sea of green, which is a great thing to see for those who are bullish."
BULL RUN: Despite lingering geopolitical concerns from conflicts in the Middle East and Ukraine, investors have been encouraged this summer by strong corporate earnings and steady job gains. The question is whether all the confidence on Wall Street is being echoed on Main Street. That's one reason investors will be particularly interested in the latest government data on durable goods, due out Tuesday.
"Are people who are getting employed actually spending on bigger-ticket items? That becomes the big test," Kinahan said.
(Excerpt) Read more at usnews.com ...
The “Lie Bubble” or “Fiat Bubble”....
In My Opinion...
Europe is a disaster so US equities are a safe haven.
Germany and US yields are down as money flows into those safe havens as well.
That and DB economist today said “buy US equities”
Canada’s still a safe haven, hence the BK/Timmies deal, but Ontario’s dragging it down. Even Québec is starting to get its house in order.
Tim Hortons Coffee ,yum
SP explodes on news BK is leaving USA ?
Uh, ok.
Short Cassandra.
Never fails. The index reaches a number with a lot of zeros and many ‘analysts’ start going gaga and saying foolish things.
1. the index is not adjusted for inflation.
2. 1999.999 is essentially the same as 2000.000.
3. When it goes under 2000 no one will comment about it.
Since Canada pays higher taxes, I believe 42% than how can BK shave taxes that way?
‘news the fast-food chain is in talks to acquire doughnut chain Tim Hortons and create a new holding company headquartered in Canada, a move that could shave its tax bill.’
Just talking one factor, obviously that item is having more impact on TSX than S&P. I was referring to other trends of where the money is moving to stay safe, Canada’s perceived stability and low-tax status being a factor.
Taxes have been falling here over the past 20 years and our corporate taxes are lower than USA and among the lowest in the world. Also, US-domiciled companies pay more tax on foreign earnings than those of other countries; Toronto is a leading music production centre thanks to Uncle Sam taxing worldwide sales of US recordings.
RE: Europe is a disaster so US equities are a safe haven.
Yes, but what do PROFITS on average tell us about US companies?
Would not buy Burger King. Only a matter of hours until the politicians start threatening and demagoguing them. Then the stock will drop like a stone.
RE: Yeah 1Q is off the near-term peak two quarters ago but up YOY despite the winter impact.
Well, this means that there is some FUNDAMENTAL basis for the up market that we have today.
I wouldn’t dismiss this (even with the very loose Fed ).
Exactly. I agree. This chart is the reason why I’ve been saying the S&P isn’t overvalued and a “bubble”.
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