Stocks Close 2013 With More Record Highs

Stocks finished 2013 with new record highs, as the S&P 500 closed-out the year with a 30 percent advance.
 
Stocks finished a bullish year with more record highs, as the S&P 500 capped-off its best year since 1997 with a 30-percent advance. Two upbeat economic reports got the New Year’s Eve party going early. The Conference Board reported that its Consumer Confidence Index for December climbed to 78.1 from 72 in November. Economists were expecting a less-significant increase to 76. The S&P / Case-Shiller Home Price Index was basically in-line with economists’ expectations, as its 20-City Composite Index climbed 13.6 percent, compared with an expected 13.7 percent increase. The report was based on a three-month average from August through October.
 
The Dow Jones Industrial Average (DIA) picked up 72 points to finish Tuesday’s trading session at a record-high close at 16,576.66 for a 0.44 percent advance, after hitting a record intraday high of 16,588.25. The S&P 500 (SPY) advanced 0.40 percent to a record-high close at 1,848.36, after reaching a record intraday high of 1,849.44.
 
The Nasdaq 100 (QQQ) surged 0.61 percent to finish at 3,592. The Russell 2000 (IWM) climbed 0.26 percent to a record-high close of 1,163.64.
 
In other major markets, oil (USO) dropped 0.59 percent to close at $35.32.
 
On London’s ICE Futures Europe Exchange, February futures for Brent crude oil declined 31 cents (0.28 percent) to $110.90/bbl. (BNO).
 
February gold futures advanced $1.20 (0.10 percent) to $1,205.00 per ounce (GLD). 
 
Transports accelerated across the 2013 finish line on Tuesday, as the Dow Jones Transportation Average (IYT) ended the year with a record-high close at $131.10 after hitting a record intraday high of $132.14.
 
In Japan, the stock market was closed on New Year’s Eve (EWJ).
 
Stocks advanced in China as the government finally ended its IPO freeze. Shares in brokerage firms led the advance after the government approved five initial purchase offerings on Tuesday. The Shanghai Composite Index surged 0.88 percent to 2,115 (FXI). Hong Kong’s Hang Seng Index advanced 0.26 percent to 23,306 (EWH).
 
A shortened trading day in Europe brought thin trading volume, although stocks advanced as investors were feeling bullish about ending the best year for the region’s stock market since 2009. The Euro STOXX 50 Index finished Tuesday’s session with a 0.26 percent advance to 3,109 – climbing further above its 50-day moving average of 3,034. The STOXX 50 booked a 17.95 percent advance during 2013. Its Relative Strength Index is 63.49 (FEZ).
 
Technical indicators revealed that the S&P 500 climbed further above its 50-day moving average of 1,788 after advancing 0.40 percent to finish Tuesday’s session at a record-high closing level of 1,848.36. Its Relative Strength Index climbed from 69.08 to 71.26. Most investors consider an RSI above 70 as an “overbought” signal. The MACD is climbing above the signal line, which would suggest that the S&P should continue its advance during the immediate future.

On Tuesday, all sectors advanced except for the healthcare sector, which took a 0.05 percent dip.
 
Consumer Discretionary (XLY):  +0.39%
 
Technology:  (XLK):  +0.65%
 
Industrials (XLI):  +0.60%
 
Materials: (XLB):  +0.35%
 
Energy (XLE):  +0.97%
 
Financials: (XLF):  +0.51%
 
Utilities (XLU):  +0.18%
 
Health Care: (XLV):  -0.05%
 
Consumer Staples (XLP):  +0.07%
 
Bottom line:  Two upbeat economic reports pushed the major stock indices across the 2013 finish line with big gains, as the S&P 500 advanced 30 percent during the year. The Dow and the S&P 500 indices reached record intraday and closing high levels, while the Russell 2000 had to be happy with a record-high closing level, having fallen short of its December 23 record intraday high.    

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