Is the Market’s Rise Misleading?
The stock market is showing a health glow as we leave 2013, and the Standard & Poor’s 500 Index looks to be headed for its best yearly advance in sixteen years, according to Bloomberg. Possibly due to housing prices and consumer confidence, the S&P may do better than any year since 1997. Big moves being made in the marketplace include Phillips 66 (NYSE:PSX) after its transaction with Berkshire Hathaway Inc. (NYSE:BRK.A), and Hertz Global Holdings Inc. (NYSE:HTZ) hit an all time high after rising 8.8 percent following its shareholder plan announcement.
According to Bloomberg, the S&P 500 hit a record of $1846.59 today, and the equities benchmark went up 29 percent over the course of this year. The S&P 500 isn’t the only one with good news though, with the Dow Jones Industrial Average jumping 50.31 points to $16554.60 for an all-time high as well.
“The market is up primarily for two reasons. Obviously, you’ve got the consumer confidence data. It’s also the last trading day of the year, and typically it’s reasonably positive if there’s no negative news. As people and firms shore up books for the end of the year, typically the market drifts higher,” said Aaron Izenstark, the co-founder of Iron Financial LLC, to Bloomberg.