New York – Wall Street reached another milestone during a muted session Monday, as the Standard & Poor’s 500 index briefly passed its record close of 1,527.46 for the first time in more than seven years.
The S&P 500, considered by market professionals the best indicator of stock performance, surpassed the mark shortly after noon EDT following news of a fresh spate of takeover deals. The broad market index has lagged the Dow Jones industrial average in recovering from Wall Street’s prolonged slump earlier this decade.
The S&P 500 rose as high as 1,529.87, then edged back to 1,525.10, up 2.35, or 0.15 percent, as cautious investors locked in profits after weeks of gains. The index’s advance was driven by buying in nontechnology sectors such as energy, materials, industrials and financials, S&P data showed. Its all-time trading high of 1,552.87 was set March 24, 2000, the day the index reached its record close.
Reassuring Wall Street that acquisition activity will keep up its record pace this year, General Electric Co. said it is selling its plastics division to Saudi Arabia’s largest industrial company, Saudi Basic Industries Corp., for $11.6 billion.
The announcement followed news Sunday that telecommunications company Alltel Corp. agreed to be bought for $24.8 billion, and that China’s upstart state investment company was investing $3 billion in Blackstone Group LP. Blackstone, the second-largest U.S. private- equity firm, is planning an initial public offering later this year and has been on a buying tear; last week, it snapped up credit-card-services provider Alliance Data Systems Corp. for $6.43 billion.
The Dow retreated modestly after venturing into record territory earlier in the day. The blue- chip index fell 13.65, or 0.10 percent, to 13,542.88 after hitting an intraday high of 13,586.03.
The Nasdaq composite index rose 20.34, or 0.80 percent, to 2,578.79, after reaching a six- year high of 2,587.87.
After 24 record closes for the Dow this year, the S&P has finally caught up.
“This is new territory, but more importantly it serves as a reminder that the three broad indices are doing well. That should be the focus,” said Arthur Hogan, chief market analyst at Jefferies & Co.
Bonds rose Monday. The yield on the benchmark 10-year Treasury note slipped to 4.79 percent from 4.81 percent late Friday.
Crude oil soared $1.33 to $66.27 a barrel on the New York Mercantile Exchange.
