S&P closes above 1,500 for 1st time since 2007
On Friday, Apple continued to decline, allowing Exxon Mobil to once again surpass the electronics giant as the world's most valuable publicly traded company. Apple fell 2.4 percent to $439.88, following a 12 percent drop on Thursday, the biggest one-day percentage decline for the company since 2008, after Apple forecast slower sales. The stock is now 37 percent below the record high of $702.10 it reached Sept. 19.
Apple first surpassed Exxon in market value in the summer of 2011, grabbing a title Exxon had held since 2005. The two traded places through that fall, until Apple surpassed Exxon in early 2012.
Not everyone on Wall Street thought the S&P milestone was worth celebrating. Some noted the stock market is more a reflection of how traders feel than a reflection of underlying fundamentals.
"It's not a landmark that we really follow or that we really care about," said Derrick Irwin, portfolio manager for Wells Fargo Advantage Funds. "Focusing on the benchmarks can end up shooting you in the foot, as we've seen."
Some of the rise may also be due to investing stock market momentum. A rule of thumb is that when a stock price or an overall index gets tantalizingly close to a milestone, as the S&P has been for days now, it's almost certain to cross that milestone, at least temporarily.
"Sure, it's a good thing," said Christian Bertelsen, chief investment officer of Global Financial Private Capital in Sarasota, Fla. "But I wouldn't read too much into it."
Still, Deutsche Bank analysts raised their year-end target for the index to 1,600 from 1,575.
Companies will be able to maintain their earnings even if lawmakers in Washington decide to implement wide-ranging spending cuts to narrow the budget deficit, the analysts said in a note sent to clients late Thursday.
The yield on the 10-year Treasury note, which moves inversely to its price, climbed 11 basis points to 1.95 percent.
Among other stocks making big moves.
— Halliburton gained $1.91 to $39.72 after posting a loss that was smaller than analysts had expected. The oilfield-services company said fourth-quarter profits declined 26 percent to $669 million on increasing pricing pressure in the North American market and one-time charges from the Deepwater Horizon disaster. Wall Street had expected worse.
— Hasbro fell $1.14 to $37.31 after the toy maker said its fourth-quarter revenue failed to meet expectations because of poor demand over the holidays. The company plans to cut about 10 percent of its workforce and consolidate facilities to cut expenses.
— Green Mountain Coffee Roasters rose $2.53 to $46.31 after an analyst noted that sales of a competing coffee brewer introduced by Starbucks were getting off to a weak start.
AP Business Writer Christina Rexrode contributed to this report.
Business Photo Galleriesview all
- 18669Oklahoma tornadoes: The 'Big Dog,' the little boy and the hug that triumphs over tragedy
- 10379Oklahoma tornadoes: Woman meets the military officer who shared the clothes off his back
- 9301Finding Addyson – One family's struggle in the Moore tornado
- 7759Oklahoma tornadoes: Thunder reverses the role, takes a turn at cheering on the community
- 6777UPDATE: Search continues for boy, 17, missing in Uncle John Creek in Kingfisher
- 6498Story behind the photo: Family members describe desperate search for one another after EF5 twister
- 6417Oklahoma tornadoes: Plaza Towers Elementary School teacher shoved students into bathroom as wall collapsed