[November 27, 2013]NEW YORK (AP) — Upbeat news from the
housing industry and luxury retailer Tiffany & Co. nudged the stock
market higher Tuesday.
Investors also got another market milestone when the Nasdaq
composite closed above the 4,000-point mark for the first time in 13
years.
The event follows two other round-number moments last week. The
Standard & Poor's 500 index closed above 1,800 for the first time,
and the Dow Jones industrial average finished above 16,000.
On Tuesday, homebuilder shares were among the top gainers in the
broader stock market. They rose after the Commerce Department
reported that approvals for housing permits rose in October at the
fastest pace in five years. Those applications indicate that
builders expect heightened demand.
Most of the growth in the report came from apartment permits, not
homes, but investors felt the data was positive.
"It's going to translate into job creation once those permits turn
into actual construction," said Quincy Krosby, market strategist
with Prudential Financial.
Shares of PulteGroup, Toll Brothers and Lennar Corp. all rose 3
percent or more.
The Nasdaq closed up 23.18 points, or 0.6 percent, to 4,017.75. The
last time the Nasdaq closed above the 4,000-point level was Sept. 6,
2000.
The other two major stock indexes inched higher. The Dow rose less
than a point to 16,072.80. The S&P 500 index also rose less than a
point, to 1,802.75.
Tiffany & Co. rose the most in the S&P 500 index. The jewelry chain
jumped $7.03, or 9 percent, to $88.02, after it reported strong
third-quarter earnings. The company also raised its full-year
forecast.
Stock and bond markets are closed Thursday in observance of
Thanksgiving. On Friday, the New York Stock Exchange and Nasdaq will
close early.
Investors continue to pay close attention to any details from
retailers, with the approach of Black Friday, the busy shopping day
that follows Thanksgiving.
Due to the lateness of Thanksgiving, the holiday shopping season is
a week shorter than usual and that could affect the amount of
shopping people do. An increasing number of retailers are opening up
on Thanksgiving to draw in customers.
Holiday shopping can account for as much as 40 percent of the retail
industry's annual sales. The National Retail Federation, the
nation's largest retail trade group, expects an increase of 3.9
percent to $602.1 billion in holiday sales this year
Already, many retailers have trimmed profit forecasts for the year,
citing Americans' hesitation to spend a lot of money. Barnes & Noble
shares fell 98 cents, or 6 percent, to $15.45 after the bookseller's
fiscal second-quarter sales fell short of Wall Street expectations.
In other company news, men's clothing store Jos. A. Bank rose $5.69,
or 11 percent, to $56.29 after rival Men's Wearhouse offered to buy
the company for $1.5 billion. Men's Wearhouse rose $3.53, or 8
percent, to $50.60.
