Investors failed to make the Standard & Poor’s 500 Index reach the 1,700 mark in one of the bullish years for the US stock market. The Dow Jones Industrial average increased 22.19 points to close at a record high of 15,567.74.
The benchmark S&P 500 dropped 3.14 points to close the trading session at 1,692.39. The index got new intraday high and came within 2 points of 1,700 as several second quarter earnings report were released before the opening of the session. The broad market index closed at a record high Monday and just 5 points from 1,700.
Travelers, an insurance company, dropped 3.8 percent to $82.21 despite reporting a 85 percent increase in profits during the second quarter. Apple closed down 21.11 points to 3,579.27. The tech giant has yet to release its second quarter earnings report.
It has been 80 days since the S&P 500 went above 1,600. Its fastest ever move was in early 1998, when the index went from 1,000 to 1,100 in 50 days. The S&P 500 increased 150.6 percent since the bull market started in March 2009. This marked the fifth best bull run in US stock market history.
The S&P 500 managed to get a 100 point increase in 2013, which is far from the slow rate of gains in the so-called Lost Decade. It took 13 years, one month and 11 days for the S&P 500 to go from 1,500 to 1,600.
The second quarter earnings reports have painted a mixed picture of the economy. Some companies managed to be above estimates made by Wall Street but at the same time, there are indications that the second half would not be as strong as earlier predictions.
The market has able to keep rising while experiencing headwinds such as weak global growth, the impending pull back of the Federal Reserve of its stimulus program, and the recent increase in long term interest rates.
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