NEW YORK—The U.S. stock market experienced gains for the second straight week ahead of the New Year, as the S&P 500 Index rose to its highest level since September 2008.
The S&P 500 Index, which tracks the largest 500 U.S. companies, rose 1.28 percent for the week and 0.6 percent last Friday to finish at 1,240.40, its highest level in two years. The Dow Jones Industrial Average also gained last week, rising 0.25 percent. The technology-heavy Nasdaq Composite Index finished last week up 1.8 percent.
Stocks rose last Friday and bonds and Treasurys both fell, a sign that bull investors are fully in control. Analysts expect this year to yield strong holiday sales figures, bolstering retail sector stocks.
There were signs that the U.S. corporate sector is squarely out of the recession. The shares of conglomerate General Electric Co. rose 5.6 percent last week, as the company announced that it would boost its dividend payouts from 12 cents per share to 14 cents per share in a sign of strong cash flows and solid earnings. GE finished at $17.72, its highest level since May 13.
Banking giant Citigroup Inc. saw its shares rally more than 7.1 percent last week after the U.S. Department of Treasury sold its remaining shares in the New York-based bank. Citi shares finished trading at $4.77, the highest level since late spring.
The U.S. government also announced a deal with bailed out insurance company American International Group Inc. (AIG) for the company to pay down its Federal Reserve line of credit, sending AIG shares higher by more than 12 percent. The insurer at one point owed U.S. taxpayers more than $182 billion in the largest-ever bailout of a private firm.
Investors also cheered President Barack Obama’s tax cut agreement, after reaching a deal with House Republicans to extend Bush-era tax cuts for all Americans. The administration and many economists believe that the tax cuts would spur investments and economic growth, while lowering the nation’s 9.8 percent unemployment rate. In addition, consumer confidence figures topped estimates, easing concerns economists had regarding consumers’ ability to pay their bills and boost spending.
S&P 500 Replaces NY Times with Netflix
The S&P 500 Index shuffled its rankings last week.
S&P 50, developed by financial information company Standard & Poor’s, said that it has dropped the New York Times Co. from its ranks, and added Netflix Inc. to its index.
The index tracks the largest 500 publicly traded companies in the United States across a broad spectrum of industries. The changes would take effect after trading day ends on Friday, Dec. 17.
Netflix, the fast-growing online movie streaming and DVD rentals website, has seen its value skyrocket, especially after rival Blockbuster Inc. filed for bankruptcy protection in September. By market capitalization, Netflix is worth around $10.1 billion.
The company’s stock has increased 200 percent over the past twelve months, bolstered by the popularity of video streamed over the Internet. The company last week signed a new agreement with Walt Disney Co. to stream the company’s television shows—including ABC, Disney Channel, and ABC Family—to Netflix customers over the Internet.
The New York Times Co., a diversified media holdings company, publishes its namesake New York Times, Boston Globe, the International Herald Tribune, and runs several Web-based media and information sites. The company in recent years has suffered from a drop in print media advertising and declining subscription revenue.
The Times was hit with an industry-wide decline in advertising sales, and along with the global economic recession, the company’s value has dwindled to just $1.4 billion—only a fraction of that of the Los Gatos, Calif.-based Netflix.
In addition to the Times, Office Depot and Eastman Kodak were also dropped from the S&P 500 Index. Kodak, once a household name in photography, has experienced a rocky transition from film to digital photography. Office Depot has faced stiff competition in the office supplies industry from Staples Inc.
New additions to the stock index include Netflix, Cablevision, F5 Networks Inc., and Newfield Exploration Co. Cablevision will replace King Pharmaceuticals Inc., which was recently acquired and integrated into pharmaceutical giant Pfizer Inc.
Each of the newly appointed companies to the S&P 500 Index was formally in the S&P Mid-Cap 400 Index, which tracks the stock performance of medium-sized businesses.
The S&P 500 Index, which tracks the largest 500 U.S. companies, rose 1.28 percent for the week and 0.6 percent last Friday to finish at 1,240.40, its highest level in two years. The Dow Jones Industrial Average also gained last week, rising 0.25 percent. The technology-heavy Nasdaq Composite Index finished last week up 1.8 percent.
Stocks rose last Friday and bonds and Treasurys both fell, a sign that bull investors are fully in control. Analysts expect this year to yield strong holiday sales figures, bolstering retail sector stocks.
There were signs that the U.S. corporate sector is squarely out of the recession. The shares of conglomerate General Electric Co. rose 5.6 percent last week, as the company announced that it would boost its dividend payouts from 12 cents per share to 14 cents per share in a sign of strong cash flows and solid earnings. GE finished at $17.72, its highest level since May 13.
Banking giant Citigroup Inc. saw its shares rally more than 7.1 percent last week after the U.S. Department of Treasury sold its remaining shares in the New York-based bank. Citi shares finished trading at $4.77, the highest level since late spring.
The U.S. government also announced a deal with bailed out insurance company American International Group Inc. (AIG) for the company to pay down its Federal Reserve line of credit, sending AIG shares higher by more than 12 percent. The insurer at one point owed U.S. taxpayers more than $182 billion in the largest-ever bailout of a private firm.
Investors also cheered President Barack Obama’s tax cut agreement, after reaching a deal with House Republicans to extend Bush-era tax cuts for all Americans. The administration and many economists believe that the tax cuts would spur investments and economic growth, while lowering the nation’s 9.8 percent unemployment rate. In addition, consumer confidence figures topped estimates, easing concerns economists had regarding consumers’ ability to pay their bills and boost spending.
S&P 500 Replaces NY Times with Netflix
The S&P 500 Index shuffled its rankings last week.S&P 50, developed by financial information company Standard & Poor’s, said that it has dropped the New York Times Co. from its ranks, and added Netflix Inc. to its index.
The index tracks the largest 500 publicly traded companies in the United States across a broad spectrum of industries. The changes would take effect after trading day ends on Friday, Dec. 17.
Netflix, the fast-growing online movie streaming and DVD rentals website, has seen its value skyrocket, especially after rival Blockbuster Inc. filed for bankruptcy protection in September. By market capitalization, Netflix is worth around $10.1 billion.
The company’s stock has increased 200 percent over the past twelve months, bolstered by the popularity of video streamed over the Internet. The company last week signed a new agreement with Walt Disney Co. to stream the company’s television shows—including ABC, Disney Channel, and ABC Family—to Netflix customers over the Internet.
The New York Times Co., a diversified media holdings company, publishes its namesake New York Times, Boston Globe, the International Herald Tribune, and runs several Web-based media and information sites. The company in recent years has suffered from a drop in print media advertising and declining subscription revenue.
The Times was hit with an industry-wide decline in advertising sales, and along with the global economic recession, the company’s value has dwindled to just $1.4 billion—only a fraction of that of the Los Gatos, Calif.-based Netflix.
In addition to the Times, Office Depot and Eastman Kodak were also dropped from the S&P 500 Index. Kodak, once a household name in photography, has experienced a rocky transition from film to digital photography. Office Depot has faced stiff competition in the office supplies industry from Staples Inc.
New additions to the stock index include Netflix, Cablevision, F5 Networks Inc., and Newfield Exploration Co. Cablevision will replace King Pharmaceuticals Inc., which was recently acquired and integrated into pharmaceutical giant Pfizer Inc.
Each of the newly appointed companies to the S&P 500 Index was formally in the S&P Mid-Cap 400 Index, which tracks the stock performance of medium-sized businesses.
