The Standard & Poor’s 500 Index (SPX) rose above its highest close since 2008 as better-than-estimated consumer confidence and home sales reports bolstered confidence in the world’s largest economy. Energy, utility and technology shares had the biggest gains in the S&P 500 among 10 industries. American International Group Inc. (AIG) surged 4.3 percent as the bailed-out insurer said profit jumped 77 percent. Salesforce.com Inc. (CRM), the largest seller of online customer-management software, climbed 7.3 percent after billings growth topped analysts’ estimates. Kroger Co. (KR), the largest U.S. grocery-store chain, added 1.2 percent after Citigroup Inc. recommended buying the shares.
The S&P 500 increased 0.1 percent to 1,365.41 at 10:37 a.m. New York time, paring a gain of as much as 0.3 percent. The benchmark gauge for American equities exceeded its April 2011 peak of 1,363.61, which was the highest level since June 2008. The Dow Jones Industrial Average fell 2.12 points, or less than 0.1 percent, to 12,982.57 today.
“We continue to see pretty good growth and that’s good for stocks,” James McDonald, chief investment strategist at Northern Trust Corp. in Chicago, said in a phone interview. His firm manages about $665 billion. “The Dow is flirting with 13,000. While it makes no difference from a valuation standpoint, it can cause some people to say: we’ve had a pretty a big run and I’ll take a bit off the table. From a valuation standpoint, the stock market is still pretty attractive.”
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