MARKET REPORT

After nibbling, S&P beats record

NEW YORK - After knocking on the door all week, the stock market logged a record Thursday.

The Standard & Poor’s 500 index had moved above its previous all-time high on numerous occasions this week, only to fade in afternoon trading. On Thursday, the index stayed higher after a number of U.S. companies, including drugmaker Mylan and several retailers, reported strong earnings.

The S&P 500 rose 9.13 points, or 0.5 percent, to 1,854.29. Its previous record-high close was 1,848.38, set Jan. 15.

The Dow Jones industrial average rose 74.24, or 0.5 percent, to 16,272.65. The Dow is still about 1.8 percent below its record close of 16,576.66. The Nasdaq composite climbed 26.87 points, or 0.6 percent, to 4,318.93. The Nasdaq is also short of its record close of 5,048.62 set in March 2000.

The stock market has staged an impressive turnaround in February after slumping at the start of the year on concerns about the prospects for growth in China and worries about the health of the U.S. economy. Growth in corporate earnings and optimism that the Federal Reserve will keep supporting the economy have helped support demand for stocks.

“In the last few days we’ve flirted with it, and now we’ve got the new high,” said Ryan Detrick, a senior technical strategist at Schaeffer’s Investment Research.

The timing of the new record, just before the start of spring, could help the market extend its gains, Detrick said. March has been the third-strongest month over the last 30 years, with an average gain of 1.4 percent, according to the Stock Traders’ Almanac.

“It bodes well for equities for the next couple of months, at least,” Detrick said.

On Thursday, generic drugmaker Mylan led the S&P 500 index higher after reporting an 11 percent increase in fourth-quarter earnings, beating analysts’ expectations despite higher expenses. Mylan’s stock climbed $4.85, or 9.4 percent, to $56.27.

Stocks also got a lift from a range of retailers that reported strong earnings.

J.C. Penney jumped $1.51, or 25 percent, to $7.47 after the department store chain swung to a profit in the fourth quarter after posting a big loss in the same period a year earlier. Penney also reported its first quarterly gain in a key revenue figure in more than two years.

Kohl’s rose $1.30, 2.4 percent, to $55.74 after the department store operator reported earnings that topped analysts’ estimates. Revenue fell but met Wall Street’s expectations.

After a tough start to the year, investor sentiment has shifted in February.

The S&P 500 was down almost 6 percent for the year at the start of February. Investors were selling stocks as manufacturing contracted in China and as currencies in emerging market nations such as Turkey and Argentina plummeted against the dollar. The S&P 500 erased those losses this month and is now positive for the year.

In government bond trading, the yield on the 10-year Treasury note fell to 2.65 percent from 2.67 percent Wednesday.

Business, Pages 28 on 02/28/2014

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