LONDON: U.S. stocks ended slightly higher on Thursday, sending the S&P 500 to a fresh record. The main indexes continued to trade in narrow ranges in the absence of a major catalyst to move prices either direction.
Investors mostly brushed off a flurry of weaker-than-expected economic data a day after minutes from Federal Reserve’s last meeting signaled a June interest-rate hike was unlikely.
The S&P 500 SPX, +0.23% added 4.97 points, or 0.2%, to settle at 2,130.82—an all-time closing high. The Dow Jones Industrial Average DJIA, +0.00% ended the day virtually flat at 18,285.74. The Nasdaq Composite COMP, +0.38% gained 19.05 points, or 0.4%, to 5,090.79.
The main indexes need only modest gains from current levels to achieve a so-called trifecta, an occasion when all three post record closes on the same day, an event that hasn’t occurred since 1999.
Michael Antonelli, equity sales trader at RW Baird, pointed out that the stock market has been on a slow grind higher despite pessimistic sentiment and outflows.
“The fact that people have been shifting money out of U.S. equity funds and the bullish sentiment has been at very low levels for weeks, makes us feel as though it’s not the top,” Antonelli said.
“Breaking out to new records is also a bullish sign, but we are grinding higher most likely because corporations keep buying their own stocks,” he said.
He also argued that markets are too focused on the Federal Reserve instead of fundamentals like earnings and the economy. “Until something drastic happens, markets will keep grinding higher, because the primary trend is intact,” he said.
James Abate, chief investment officer at Centre Funds, said it was dangerous to see stock prices being bid higher while the economy seems to be tepid at best.
“Corporations are price insensitive and are buying their own stocks at high valuations, but until there is a catalyst, we expect this to continue,” Abate said.
