S&P 500 tops 1500, Dow hits another record...

[6SpeedTA95]

The S&P 500 is closing in on a record. The previous high for the S&P was 1527.46 on March 24th 2000. We are getting very close to hitting this record. Considering the undervaluation of the S&P right now we are poised for a significant run up in the S&P assuming our current economic slump is over by years end.

S&P 500 tops 1,500
Dow 30 hits all-time closing high again, while broader S&P tops milestone for the first time in more than 6 years.
By Alexandra Twin, CNNMoney.com senior writer
May 3 2007: 4:11 PM EDT


NEW YORK (CNNMoney.com) -- Stocks rallied Thursday, with the Standard & Poor's 500 closing above 1,500 for the first time in more than six years and the Dow Jones industrial average ending at a record high for the third time in a row and sixth time in seven sessions.

The Dow (up 15.19 to 13,227.07, Charts) gained 0.2 percent, missing out on a broader advance due to the impact from General Motors, which reported a surprisingly weak earnings report in the morning.

But the broader S&P 500 (up 5.82 to 1,501.74, Charts) index - the market gauge most widely watched by professional investors - climbed 0.4 percent and ended above 1,500 for the first time since the third quarter of 2000.

The tech-heavy Nasdaq composite (up 6.24 to 2,564.08, Charts) rose 0.3 percent and closed at a 6-year high.

The Dow has now gained in 22 of the last 25 sessions for a gain of 7.6 percent. That run matches the Dow's previous longest streak from the summer of 1955, when the blue-chip leader climbed about 10 percent.

Stocks rose as investors welcomed the day's batch of upbeat economic news and geared up for Friday's big monthly jobs report.

Treasury prices slipped on the session, boosting the corresponding yields. The dollar gained versus the yen and euro. Oil prices fell and gold prices rose.

Here's a look at what was moving near the close.

Dow Jones won't act on Murdoch bid
After Wednesday's rally - spurred by a $10.6 billion deal for Cablevision, upbeat earnings and a strong manufacturing report - stocks were choppy early Thursday despite upbeat reads on productivity and the services sector. But as the day wore on, the tone improved.

The "spillover effect from the recent merger news" and positive economic news were helping to spark the gains, said Fred Dickson, chief market strategist at D.A. Davidson.

He said the stock market continued to be supported by the spate of mostly positive earnings reports, with the exception of GM this morning. The other factor: the psychological and technical boost from the S&P 500 topping 1,500.

"The fact that the S&P 500 tipped above the 1,500 level has triggered some big program trades," Dickson added.

However, he noted that investors might step back a bit ahead of the big April jobs report, expected Friday.

Employers are expected to have added 100,000 jobs to their payrolls in April, after having added 180,000 in the previous month.

The number could end up missing estimates, if its follows the trend of the weaker-than-expected report on private sector jobs released Wednesday.

The unemployment rate, generated by a separate survey, is expected to have risen to 4.5 percent from 4.4 percent last month. Average hourly earnings, the report's inflation component, are forecast to have risen 0.3 percent, matching March's rise.

Ahead of that, investors welcomed a trio of positive economic reports Thursday.

First-quarter productivity grew a bigger-than-expected 1.7 percent, the government said Thursday morning. Unit labor costs, the report's inflation component, grew a much smaller-than-expected 0.6 percent.

Another report, the weekly jobless claims report, showed a surprise drop last week in the number of Americans filing new claims for unemployment.

The ISM services sector index, released shortly after the open, rose to a stronger-than-expected 56 in the month, adding to bets that the economy is holding up despite being in a period of slower growth.

CNNMoney.com Market Report - May. 3, 2007

[kinggovernor]

this means nothing to anyone

[DosEquis]

Ah yes, the bi-weekly update on how the upper 1% is doing. Perhaps instead of free bags of onions at work, next year they might do potatoes or carrots.

[6SpeedTA95]

Originally Posted by DosEquis

Ah yes, the bi-weekly update on how the upper 1% is doing. Perhaps instead of free bags of onions at work, next year they might do potatoes or carrots.

market tanks its bush's fault and the world is going to pot, market does great and it means nothing, nice try

[6SpeedTA95]

Like it or not this is good news. This represents the broader stock market and contains the 500 largest US companies. Investors are doing well, those employed by these companies are doing well and the market is historically under valued.

[SpicyMcVoodoo]

Interesting...the stock market is rising while real estate is tanking. In the end, I wonder how this will affect the average Joe.

[ballz2wallz]

Originally Posted by DosEquis

Ah yes, the bi-weekly update on how the upper 1% is doing. Perhaps instead of free bags of onions at work, next year they might do potatoes or carrots.

We'd be in a world of hurt if the rich were getting poorer. If the people that work the hardest and invest the smartest are still losing money, I have no doubt the people who worst the laziest and invest the dumbest are also losing money, and at higher percentages.

Be glad the rich are getting richer.

[6SpeedTA95]

Originally Posted by SpicyMcVoodoo

Interesting...the stock market is rising while real estate is tanking. In the end, I wonder how this will affect the average Joe.

Thats a pretty good point but its impossible to tell until we see where the real estate market settles. In some areas people are being very badly hit by the real estate crash. As a whole though the market upswing is stronger than the real estate downturn at this point, but that could change significantly and quickly. Unfortunately all we can do is speculate about this but it is an excellent question.

Here's my specuation.

Market so far is up more than 6% this year, for the last 12 months the markets are up about 15% which is considerably more than real estate has fallen in price. As for this year I think the markets will finish up 18% to 22% and real estate median home price to stay flat or decline between 0 and -2%. Keep in mind this "real estate" crash has affected home prices primarily in the over heated housing markets. The national median home price has remained pretty flat resulting in an average gain for consumers with the markets going up. I would expect a similar trend with the downturn in housing to hit rock bottom sometime in the 3rd quarter of this year.

edit: on the subject of stock markets assuming the economy doesn't begin contraction we're prime for a significant rally. Stocks on the S&P are trading at about 14.5x PE right now. Which is historically low.

[Stylerod]

Originally Posted by 6SpeedTA95

Thats a pretty good point but its impossible to tell until we see where the real estate market settles. In some areas people are being very badly hit by the real estate crash. As a whole though the market upswing is stronger than the real estate downturn at this point, but that could change significantly and quickly. Unfortunately all we can do is speculate about this but it is an excellent question.

Here's my specuation.

Market so far is up more than 6% this year, for the last 12 months the markets are up about 15% which is considerably more than real estate has fallen in price. As for this year I think the markets will finish up 18% to 22% and real estate median home price to stay flat or decline between 0 and -2%. Keep in mind this "real estate" crash has affected home prices primarily in the over heated housing markets. The national median home price has remained pretty flat resulting in an average gain for consumers with the markets going up. I would expect a similar trend with the downturn in housing to hit rock bottom sometime in the 3rd quarter of this year.

edit: on the subject of stock markets assuming the economy doesn't begin contraction we're prime for a significant rally. Stocks on the S&P are trading at about 14.5x PE right now. Which is historically low.

It also differs by region. My wife is having one of the best April/Mays ever selling houses. Some places of the country are doing poorly while others continue to grow.

[7960]

Originally Posted by SpicyMcVoodoo

Interesting...the stock market is rising while real estate is tanking. In the end, I wonder how this will affect the average Joe.

It means I changed my mind and instead of doing a big addition on my house I'm looking to move instead.

The addition will cost the same today that it would have cost a year ago. The stock market is going up so I have that cash either way. But everyone's house went down 10% to 20% in value, so my $350k house is now worth $325k while the $500k house I wanted is now selling for $425k. Do the math and I'm gaining on the rich people and may be able to "steal" a house from someone who overextended himself a few years ago.

Originally Posted by Stylerod

It also differs by region. My wife is having one of the best April/Mays ever selling houses. Some places of the country are doing poorly while others continue to grow.

It's a buyer's market and a lot of people spent the last few years buying McMansions they can't afford. I'm not surprised she's selling a lot of houses. But I'd also be curious if people are selling because they're broke.

I'm looking at these 3 today and tomorrow. Wish me luck

[6SpeedTA95]

Originally Posted by 7960

It means I changed my mind and instead of doing a big addition on my house I'm looking to move instead.

The stock market is going up so I have cash. The addition will cost the same today that it would have cost a year ago. But everyone's house went down 10% to 20% in value, so my $350k house is now worth $325 while the $500k house I wanted is now selling for $425k. Do the math and I'm gaining on the rich people and may be able to "steal" a house from someone who overextended himself.

It's a buyer's market and a lot of people spent the last few years buying McMansions they can't afford.

I'm looking at these 3 today and tomorrow. Wish me luck

Bling bling!!!!!!11111

I love the landscaping of the house on the left, what a fantastic yard

[7960]

Originally Posted by 6SpeedTA95

Bling bling!!!!!!11111

I love the landscaping of the house on the left, what a fantastic yard

I know, but I can't afford that one. I'm going just to throw an offer at it because I know their situation (friend of a friend) and I know they *REALLY* want to move. I'm not getting my hopes up that they'll accept the offer I'm going to make

[6SpeedTA95]

Originally Posted by 7960

I know, but I can't afford that one. I'm going just to throw an offer at it because I know their situation (friend of a friend) and I know they *REALLY* want to move. I'm not getting my hopes up that they'll accept the offer I'm going to make

Never hurts to ask...

How big are those houses from left to right?

[Stylerod]

Originally Posted by 7960

It means I changed my mind and instead of doing a big addition on my house I'm looking to move instead.

The addition will cost the same today that it would have cost a year ago. The stock market is going up so I have that cash either way. But everyone's house went down 10% to 20% in value, so my $350k house is now worth $325k while the $500k house I wanted is now selling for $425k. Do the math and I'm gaining on the rich people and may be able to "steal" a house from someone who overextended himself a few years ago.

It's a buyer's market and a lot of people spent the last few years buying McMansions they can't afford. I'm not surprised she's selling a lot of houses. But I'd also be curious if people are selling because they're broke.

I'm looking at these 3 today and tomorrow. Wish me luck

She's selling new construction.

Good luck!!!

[7960]

Originally Posted by 6SpeedTA95

Never hurts to ask...

How big are those houses from left to right?

1.60 acres, 3216 sq ft
2.88 acres, 2512 sq ft (would be 3012 if they didn't leave 500 sq ft over the garage unfinished)
2.02 acres, 4032 (2560 above ground, 1472 finished below ground)

[6SpeedTA95]

Originally Posted by 7960

1.60 acres, 3216 sq ft
2.88 acres, 2512 sq ft (would be 3012 if they didn't leave 500 sq ft over the garage unfinished)
2.02 acres, 4032 (2560 above ground, 1472 finished below ground)

Sweet

Why are the sq footage so spread out and the prices relatively close? (I made that assumption since you're considering all of them)

[7960]

Originally Posted by 6SpeedTA95

Sweet

Why are the sq footage so spread out and the prices relatively close? (I made that assumption since you're considering all of them)

that's the difference between 3 full baths v 2.5, and 3 car garage v 2 stall, and in-ground pool v above ground pool v no pool, and landscaping, and coy pond (house 1 has one), and access to a boat launch (house 1 is 500' from a lake), and a 3 season porch that abuts the pool (house 1 again), and a "billiards room" (house 1)......

But actually if you look at finished gross living area above ground (no finished basement) then the two realistic ones are between 2500 and 2600 sq ft.

The one that's out of my price range is the 3200 sq ft one (house 1, the one I want )

[6SpeedTA95]

Originally Posted by 7960

that's the difference between 3 full baths v 2.5, and 3 car garage v 2 stall, and in-ground pool v above ground pool v no pool, and landscaping, and coy pond (house 1 has one), and access to a boat launch (house 1 is 500' from a lake), and a 3 season porch that abuts the pool (house 1 again), and a "billiards room" (house 1)......

But actually if you look at finished gross living area above ground (no finished basement) then the two realistic ones are between 2500 and 2600 sq ft.

The one that's out of my price range is the 3200 sq ft one (house 1, the one I want )

I got ya.

I didn't know if that basement was considered livable.

Well goodluck.

[7960]

More pics of house 1.......it's $150k more than the other two. Seriously, I don't expect they'll take my offer.

Originally Posted by 6SpeedTA95

I got ya.

I didn't know if that basement was considered livable.

Well goodluck.

Of course it counts toward price, but the more important number is GLAAG (gross living area above ground).