Wall Street hits record high

Domestic economics under the microscope as the US maintains record highs. Commsec report

US stocks have surged to new all-time closing highs on renewed optimism after a prominent hedge fund manager said the stock rally of 2013 still has more room to go.

The Dow Jones Industrial Average rose 123.57 (0.82 per cent) to a record 15,215.25.

The broad-based S&P 500, also reaching a new high, added 16.57 (1.01 per cent) at 1,650.36.

The tech-rich Nasdaq Composite Index increased 23.82 (0.69 per cent) to 3,462.61.

Analysts said there was little fresh economic news driving the gains, but pointed to bullish investor David Tepper, head of the Appaloosa Management hedge fund group, who told CNBC that the market could still go higher.

"It's hard to connect the market performance to any news," said Hugh Johnson of Hugh Johnson Advisors, who cited the Tepper comments.

"There's not a real good sign that this cycle is going to end any time soon."

Banks were among the biggest gainers. JPMorgan Chase added 1.2 per cent, Citigroup rose 2.4 per cent, Bank of America jumped 2.8 per cent and Goldman Sachs put on 3.3 per cent.

Some pharmaceutical firms also fared well. Bristol-Myers Squibb rose 3.1 per cent, Gilead Sciences added 3.3 per cent and Biogen Idec jumped 3.2 per cent.

Take-Two Interactive Software, which develops interactive entertainment, rose 0.9 per cent after reporting $299.5 million in revenues, above the $280.4 million forecast by analysts. The company pointed to an "extensive pipeline of next-generation and emerging platform titles in development."

Western Gas Partners, which owns and operates pipelines and other midstream energy assets, fell 3.5 per cent to $61.00 after pricing a new issue of 6.1 million shares at $61.18, with the proceeds aimed at paying down debt and funding its capital program.

Handbag and accessory firm Coach dipped 0.1 per cent after The Wall Street Journal reported the company is considering acquisitions.

Sony's US-traded shares shot up 9.9 per cent after The New York Times reported that activist investor Daniel Loeb had begun pushing for a breakup of the struggling Japanese electronics giant.

Bond prices dropped. The yield on the 10-year US Treasury rose to 1.95 per cent from 1.92 per cent late on Monday, while the 30-year jumped to 3.16 per cent from 3.13 per cent. Bond prices move inversely to yields.

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Wall Street hits record high

Domestic economics under the microscope as the US maintains record highs. Commsec report

US stocks have surged to new all-time closing highs on renewed optimism after a prominent hedge fund manager said the stock rally of 2013 still has more room to go.

The Dow Jones Industrial Average rose 123.57 (0.82 per cent) to a record 15,215.25.

The broad-based S&P 500, also reaching a new high, added 16.57 (1.01 per cent) at 1,650.36.

The tech-rich Nasdaq Composite Index increased 23.82 (0.69 per cent) to 3,462.61.

Analysts said there was little fresh economic news driving the gains, but pointed to bullish investor David Tepper, head of the Appaloosa Management hedge fund group, who told CNBC that the market could still go higher.

"It's hard to connect the market performance to any news," said Hugh Johnson of Hugh Johnson Advisors, who cited the Tepper comments.

"There's not a real good sign that this cycle is going to end any time soon."

Banks were among the biggest gainers. JPMorgan Chase added 1.2 per cent, Citigroup rose 2.4 per cent, Bank of America jumped 2.8 per cent and Goldman Sachs put on 3.3 per cent.

Some pharmaceutical firms also fared well. Bristol-Myers Squibb rose 3.1 per cent, Gilead Sciences added 3.3 per cent and Biogen Idec jumped 3.2 per cent.

Take-Two Interactive Software, which develops interactive entertainment, rose 0.9 per cent after reporting $299.5 million in revenues, above the $280.4 million forecast by analysts. The company pointed to an "extensive pipeline of next-generation and emerging platform titles in development."

Western Gas Partners, which owns and operates pipelines and other midstream energy assets, fell 3.5 per cent to $61.00 after pricing a new issue of 6.1 million shares at $61.18, with the proceeds aimed at paying down debt and funding its capital program.

Handbag and accessory firm Coach dipped 0.1 per cent after The Wall Street Journal reported the company is considering acquisitions.

Sony's US-traded shares shot up 9.9 per cent after The New York Times reported that activist investor Daniel Loeb had begun pushing for a breakup of the struggling Japanese electronics giant.

Bond prices dropped. The yield on the 10-year US Treasury rose to 1.95 per cent from 1.92 per cent late on Monday, while the 30-year jumped to 3.16 per cent from 3.13 per cent. Bond prices move inversely to yields.

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Europe shares rally amid Frankfurt record

EUROPEAN equities have rallied with star performer Frankfurt striking a record high following impressive company earnings and upbeat data, and after Australia cut interest rates.

Germany's DAX 30 index of leading shares jumped as high as 8197.72 points, surpassing its previous July 2007 record, with the market lifted by impressive factory orders data.

Sentiment was further boosted after the Reserve Bank of Australia (RBA) cut interest rates to a record low in a surprise decision, one week after a reduction from the European Central Bank.

Later the DAX stood at a closing record of 8181.78 points, up 0.86 per cent from yesterday.

Elsewhere, London's FTSE 100 index of leading companies rose by 0.55 per cent to 6557.30 points, while in Paris the CAC 40 gained 0.37 per cent to 3921.32 points.

On Wall Street, the markets mostly moved higher.

At around midday, the Dow Jones Industrial Average rose 0.28 per cent, while the S&P 500 added 0.18 per cent, but the tech-rich Nasdaq Composite Index slipped 0.04 per cent.

"The German DAX index has finally caught up with its US counterparts - the Dow and S&P 500 - in climbing above the 2007 highs," said GFT Global Markets analyst Fawad Razakzada.

"Investors are piling into equities ... with the RBA becoming the latest major central bank to further loosen its policy overnight."

He said: "Low interest rates discourage investment in fixed income, making equities attractive alternatives."

Major European markets had been slightly weaker on Monday, with London closed, as investors digested solid gains that were notched up last week following the ECB rate cut and upbeat US non-farm payrolls data.

Overnight saw a raft of upbeat quarterly earnings reports from DAX heavyweights such as insurers Allianz and Munich Re.

Allianz shares gained 3.56 per cent to 120.70 euros, while Munich Re shares edged up 0.65 per cent to 149.25 euros.

In Paris, Societe Generale's share price surged 5.68 per cent to 30.14 euros, as traders shrugged off falling quarterly profits to focus on the French bank's new cost-cutting drive.

And in London, Asia-focused banking giant HSBC gained 2.96 per cent to 735 pence.

HSBC announced that net profits more than doubled to $US6.35 billion (4.86 billion euros) in the first quarter, aided by tumbling bad debts and cost cutting.

Asian stocks traded mixed overnight, but Tokyo scored its highest closing level in almost five years after a four-day holiday weekend.

Tokyo leapt 3.55 per cent to 14,180.24 points - its best finish since June 2008 - as investors caught up with last week's positive news flow, dealers said.

Tokyo rocketed on its first day of trading following the Golden Week break, aided by a United States Labor Department report on Saturday that said the US economy added 165,000 jobs in April.

The department also revised sharply upwards its jobs figures for the previous two months, helping to lower the unemployment rate to 7.5 per cent.

Sydney stocks, however, lost 0.24 per cent despite news of the RBA rate reduction.

Last Friday, the ECB cut its key interest rate to an all-time low of 0.50 per cent - a decision that came after Tokyo had closed for the holiday period.

In foreign exchange activity overnight, the European single currency firmed to $1.3085, from $1.3074 late in New York yesterday.

On the London Bullion Market, gold fell to $1444.25 an ounce from $1469.25.

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Europe shares rally amid Frankfurt record

EUROPEAN equities have rallied with star performer Frankfurt striking a record high following impressive company earnings and upbeat data, and after Australia cut interest rates.

Germany's DAX 30 index of leading shares jumped as high as 8197.72 points, surpassing its previous July 2007 record, with the market lifted by impressive factory orders data.

Sentiment was further boosted after the Reserve Bank of Australia (RBA) cut interest rates to a record low in a surprise decision, one week after a reduction from the European Central Bank.

Later the DAX stood at a closing record of 8181.78 points, up 0.86 per cent from yesterday.

Elsewhere, London's FTSE 100 index of leading companies rose by 0.55 per cent to 6557.30 points, while in Paris the CAC 40 gained 0.37 per cent to 3921.32 points.

On Wall Street, the markets mostly moved higher.

At around midday, the Dow Jones Industrial Average rose 0.28 per cent, while the S&P 500 added 0.18 per cent, but the tech-rich Nasdaq Composite Index slipped 0.04 per cent.

"The German DAX index has finally caught up with its US counterparts - the Dow and S&P 500 - in climbing above the 2007 highs," said GFT Global Markets analyst Fawad Razakzada.

"Investors are piling into equities ... with the RBA becoming the latest major central bank to further loosen its policy overnight."

He said: "Low interest rates discourage investment in fixed income, making equities attractive alternatives."

Major European markets had been slightly weaker on Monday, with London closed, as investors digested solid gains that were notched up last week following the ECB rate cut and upbeat US non-farm payrolls data.

Overnight saw a raft of upbeat quarterly earnings reports from DAX heavyweights such as insurers Allianz and Munich Re.

Allianz shares gained 3.56 per cent to 120.70 euros, while Munich Re shares edged up 0.65 per cent to 149.25 euros.

In Paris, Societe Generale's share price surged 5.68 per cent to 30.14 euros, as traders shrugged off falling quarterly profits to focus on the French bank's new cost-cutting drive.

And in London, Asia-focused banking giant HSBC gained 2.96 per cent to 735 pence.

HSBC announced that net profits more than doubled to $US6.35 billion (4.86 billion euros) in the first quarter, aided by tumbling bad debts and cost cutting.

Asian stocks traded mixed overnight, but Tokyo scored its highest closing level in almost five years after a four-day holiday weekend.

Tokyo leapt 3.55 per cent to 14,180.24 points - its best finish since June 2008 - as investors caught up with last week's positive news flow, dealers said.

Tokyo rocketed on its first day of trading following the Golden Week break, aided by a United States Labor Department report on Saturday that said the US economy added 165,000 jobs in April.

The department also revised sharply upwards its jobs figures for the previous two months, helping to lower the unemployment rate to 7.5 per cent.

Sydney stocks, however, lost 0.24 per cent despite news of the RBA rate reduction.

Last Friday, the ECB cut its key interest rate to an all-time low of 0.50 per cent - a decision that came after Tokyo had closed for the holiday period.

In foreign exchange activity overnight, the European single currency firmed to $1.3085, from $1.3074 late in New York yesterday.

On the London Bullion Market, gold fell to $1444.25 an ounce from $1469.25.

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Fortune 500 profits near record

THE 500 largest US companies scored near-record profits last year and retailer Wal-Mart replaced ExxonMobil as the biggest revenue maker on the annual list, Fortune magazine says.

Apple cracked into the top 10 companies for the first time, vaulting into sixth place from the prior year's number 17 slot.

The combined earnings of the Fortune 500 came in at $US820 billion ($798.87 billion) in 2012, slipping from the all-time high of $US824.5 billion in 2011.

Earnings amounted to 6.8 per cent of sales, well above the historical average of around 5.5 per cent, the magazine said.

"For the future the overriding question for the 500 is whether the era of abundant profits will continue," said Fortune senior editor-at-large Shawn Tully.

Mr Tully predicted that companies would be forced to increase their staff and pay higher salaries as the economy continues to improve.

"Most likely that will hold profit growth to the low single digits in the next year or two, in line with sales, as gravitational forces pull earnings back to the mean."

Mr Tully characterised 2012 as a year that saw the return of "animal spirits" or an urge to action, reflected in an increase in the number of spinoffs and mergers and acquisitions.

"For several years, players have been hoarding cash and shunning expansion," Mr Tully said. "In 2012 they put that cash - and their rapidly appreciating shares - to work in the best year for M&A in over a decade."

Wal-Mart reclaimed the top spot on the list from energy titan ExxonMobil after posting $US469.2 billion in revenues, or $US19.3 billion more than Exxon.

However, Exxon's profits of $US44.9 billion dwarfed the retailer's $US17.0 billion.

Exxon and Wal-Mart have traded the top two positions repeatedly in recent years. This year marks the ninth time Wal-Mart has topped the list.

Energy companies continued to play a prominent role in the group, with Chevron in third place and refiners Phillips 66 and Valero Energy placing fourth and ninth, respectively.

Rounding out the rest of the top 10 were Warren Buffett's Berkshire Hathaway, ranked in fifth place, Apple (six), General Motors (seven), General Electric (eight) and Ford Motor (10).

The magazine classified financial services as the "comeback" sector of the year, leading all industry groups with $US200 billion in total profits, ahead of the technology sector.

JPMorgan Chase ranked 18th, Bank of America placed 21st, Wells Fargo was 25th and Citigroup finished 26th.

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Westpac posts record $3.5bn profit

CEO of Westpac, Gail Kelly at a branch on Collins St in Melbourne. Picture: Aaron Francis Source: The Courier-Mail

WESTPAC bank boss Gail Kelly has dampened the prospect of an out-of-cycle interest rate cut blaming the higher cost of deposits for keeping the cost of funding high after posting an 10 per cent lift in its first-half cash profits to $3.52 billion.

Instead the strong balance sheet will be used to reward shareholders with a special 10c dividend payout.

Ms Kelly said she would like to pick-up some mortgage market share but admits that customer deposits are growing at a much faster rate and remain a more dominant part of the business with Westpac advertising the highest standard variable rate of the Big Four banks.

"Wholesale funding costs eased in the last six months but retail deposits continue to grow and are a bigger part of our funding mix,'' she said.

Despite concerns about weak business and consumer confidence levels, Ms Kelly is upbeat the about the economic outlook and expects a bounce back in the business sector in 2014. The bank's key cash earnings for the half were up 10 per cent to $3.52 billion on the same time last year as a result of disciplined management of the balance sheet. And Westpac's net interest margin - the difference between interest earned and paid out - was up two basis points to 2.19 per cent.

Morningstar banking analyst David Ellis said it is hard to fault the strong result which exceeded market expectations.

"Robust top line revenue growth and sharply lower bad debts boosted the first half cash profit and the earnings performance confirms our long held argument the major banks can deliver attractive profit and dividend growth despite only moderate loan growth,'' he said.

Westpac will pay its shareholders a fully-franked interim dividend of 86c per share, up four cents per share on the previous corresponding period. The bank has also agreed to pay its shareholders a special dividend of 10 cents per share.

Ms Kelly said the result showed the benefits of the bank's strategy to target high growth opportunities in the sector.

"The operating environment continues to be challenging, with subdued lending growth," she said. "However, in line with our strategy, we are actively targeting opportunities in higher growth areas where conditions are more favourable such as deposits, wealth, trade finance and natural resources."

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Stocks bank on record profit

Spirits lifted in Europe and US markets higher on good economic data.

LOCAL stocks have closed higher as ANZ's $3 billion plus half-year profit took its shares to record highs and the local market along for the ride.

RBS Morgans Brisbane senior client adviser Bill Chatterton said ANZ's 11 per cent increase in its interim dividend was rewarded by investors as its shares soared a record $1.74, or 5.78 per cent, to $31.84.

"The market has been searching for yield for some time now, so for a core yield company like ANZ to come out and improve their dividend, it was really what the market wanted to listen to,'' he said.

ANZ's result also pushed up other financial stock.

National Australia Bank surged 92c to $34.00, Commonwealth Bank jumped $1.85 to $73.45, Westpac gained 68c to $33.80 and Macquarie Bank added $1.32 to $33.80.

Other high yielding stocks also performed well.

Telstra jumped 5c to $4.98 and Qantas also gained 5c to $1.90.

Even mining stocks had a positive day, after recent drops caused by falls in commodity prices.

BHP Billiton closed up 16c to $32.70 and Rio Tinto gained 44c to $55.80.

Origin Energy managed to close 3c higher to $12.32 despite extreme wet weather in Queensland contributing to a fall in quarterly revenue and production from its oil and gas fields.

However, Whitehaven Coal fell 1c to $1.95 after the miner said it was looking to find more cost savings as it battles weak coal prices and a high local currency.

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Dow hits new record

US stocks surged higher today as favourable sentiment towards equities more than compensated for a mixed bag of economic indicators.

The Dow set a new record while the S&P 500 narrowly missed, coming within 2 points of its October 2007 all-time high. The Dow Jones Industrial Average jumped 111.90 (0.77 per cent) to 14,559.65, breaking the previous mark of March 14.

The S&P, which measures a broad base of equities in all major economic sectors, shot up 12.08 (0.78 per cent) to 1563.77, just short of its all-time closing high of 1565.15.

The tech-heavy Nasdaq Composite Index rose 17.18 (0.53 per cent) to 3,252.48. The gains came after a mixed array of economic data.

US durable goods orders for February rose solidly on mainly aircraft orders, and the S&P/Case-Shiller Home Price index showed prices rose 8.1 per cent for 20 leading cities for the 12 months to January, the highest year-over-year increase since mid-2006. But the Conference Board index of consumer confidence dropped 8.3 points to 59.7, weakened by concerns over federal budget cuts.

The rise in stocks to fresh record levels is like a "self-fulfilling prophesy", said Sam Stovall, chief investment strategist for Standard & Poor's. "There are an awful lot of people on the sidelines who would like to have more exposure to equities."

On the Dow, Hewlett-Packard gained 2.3 per cent, and Boeing added 2.1 per cent after announcing that the first test flight of its troubled 787 aircraft went according to plan. Boeing is hoping a second flight soon will get its battery fix approved so the grounded aircraft can return to service. Chipmaker Intel gained 2.9 per cent on reports that it is making progress in talks with entertainment companies to provide content for an online pay-TV service.

Berkshire Hathaway gained 1.4 per cent following a deal on its Goldman Sachs warrants that will leave it one of the investment bank's 10 biggest shareholders without having to pay anything.

The Children's Place Retail Stores, which sells children's clothing, fell 3.2 per cent after slashing its sales forecast due to "unfavourable weather and weak macro-economic" conditions that limited consumer spending.

Ziopharm Oncology, a biopharmaceutical company focused on new cancer therapies, sank 64.5 per cent after its most advanced product fell short of expectations in a trial.

Bond prices rose. The yield on the 10-year Treasury fell to 1.91 per cent from 1.92 per cent late on Monday, while the 30-year dropped to 3.13 per cent from 3.14 per cent. Bond prices move inversely to yields.

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Dow hits new record

US stocks surged higher today as favourable sentiment towards equities more than compensated for a mixed bag of economic indicators.

The Dow set a new record while the S&P 500 narrowly missed, coming within 2 points of its October 2007 all-time high. The Dow Jones Industrial Average jumped 111.90 (0.77 per cent) to 14,559.65, breaking the previous mark of March 14.

The S&P, which measures a broad base of equities in all major economic sectors, shot up 12.08 (0.78 per cent) to 1563.77, just short of its all-time closing high of 1565.15.

The tech-heavy Nasdaq Composite Index rose 17.18 (0.53 per cent) to 3,252.48. The gains came after a mixed array of economic data.

US durable goods orders for February rose solidly on mainly aircraft orders, and the S&P/Case-Shiller Home Price index showed prices rose 8.1 per cent for 20 leading cities for the 12 months to January, the highest year-over-year increase since mid-2006. But the Conference Board index of consumer confidence dropped 8.3 points to 59.7, weakened by concerns over federal budget cuts.

The rise in stocks to fresh record levels is like a "self-fulfilling prophesy", said Sam Stovall, chief investment strategist for Standard & Poor's. "There are an awful lot of people on the sidelines who would like to have more exposure to equities."

On the Dow, Hewlett-Packard gained 2.3 per cent, and Boeing added 2.1 per cent after announcing that the first test flight of its troubled 787 aircraft went according to plan. Boeing is hoping a second flight soon will get its battery fix approved so the grounded aircraft can return to service. Chipmaker Intel gained 2.9 per cent on reports that it is making progress in talks with entertainment companies to provide content for an online pay-TV service.

Berkshire Hathaway gained 1.4 per cent following a deal on its Goldman Sachs warrants that will leave it one of the investment bank's 10 biggest shareholders without having to pay anything.

The Children's Place Retail Stores, which sells children's clothing, fell 3.2 per cent after slashing its sales forecast due to "unfavourable weather and weak macro-economic" conditions that limited consumer spending.

Ziopharm Oncology, a biopharmaceutical company focused on new cancer therapies, sank 64.5 per cent after its most advanced product fell short of expectations in a trial.

Bond prices rose. The yield on the 10-year Treasury fell to 1.91 per cent from 1.92 per cent late on Monday, while the 30-year dropped to 3.13 per cent from 3.14 per cent. Bond prices move inversely to yields.

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S&P 500 flirts with record in bull market

THE S&P 500 has flirted with an all-time high as equity markets continue their upward march in the wake of strong labour data and bullish market sentiment.

At the closing bell overnight, the S&P 500, a broad-based index that includes all major segments of the US economy, finished at 1563.13, up 8.61 points, or 0.55 per cent. The all-time closing record of 1565.15 was set in October 2007.

The S&P 500 looked to follow in the footsteps of the Dow Jones Industrial Average, which broke its all-time record for the eighth straight day, closing at 14,537.99, up 82.71 points, or 0.57 per cent.

The tech-rich Nasdaq Composite index climbed 13.81 points, or 0.43 per cent, to 3258.93.

The trading was boosted by news that US jobless claims declined for the third week in a row, sinking 10,000 to 332,000.

"The stock market tends to lead the economy, whether the economy is expanding or contracting, by about six months," said Sam Stovall, chief investment strategist at Standard & Poor's.

"The implication is that investors believe the US economy and also the global economy is likely to see an improvement in its overall trajectory," Mr Stovall said.

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S&P 500 flirts with record in bull market

THE S&P 500 flirted with an all-time high overnight as equity markets continued their upward march in the wake of strong labour data and bullish market sentiment.

The S&P 500, a broad-based index that includes all major segments of the US economy, finished at 1563.23, up 8.71 points (0.56 per cent).

The all-time closing record of 1565.15 was set in October 2007.

The S&P 500 looked to follow in the footsteps of the Dow Jones Industrial Average, which broke its all-time record for the eighth straight day, closing at 14,539.14, up 83.86 (0.58 per cent).

The tech-rich Nasdaq Composite index climbed 13.81 (0.43 per cent) to 3258.93. The trading was boosted by news that US jobless claims declined for the third week in a row, sinking 10,000 to 332,000.

"The stock market tends to lead the economy, whether the economy is expanding or contracting, by about six months," said Sam Stovall, chief investment strategist at Standard & Poor's.

"The implication is that investors believe the US economy and also the global economy is likely to see an improvement in its overall trajectory," Mr Stovall said.

Banking equities were among the biggest gainers, with JPMorgan Chase picking up 1.7 per cent, Bank of America adding 0.4 per cent and Goldman Sachs rising 1.4 per cent.

But some technology firms saw big drops. Amazon retreated 3.4 per cent, Netflix sank 2.1 per cent and E*TRADE Financial declined 8.2 per cent.

Men's Wearhouse rose 19.1 per cent despite reporting a deeper loss than expected. The clothing chain announced a $200 million share repurchase program and said it had hired investment bank Jefferies to help it consider "strategic alternatives" for its K&G discount stores.

EMC and VMware added gains for a second day after unveiling their ambitious new joint initiative for a cloud-based data processing company. EMC shares were up 2.9 per cent, while VMware rose 4.6 per cent.

Bond prices fell. The yield on the 10-year Treasury rose to 2.03 per cent compared with 2.02 per cent yesterday, while the 30-year yield rose to 3.24 per cent from 3.22 per cent. Bond prices and yields move inversely.

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Record surge in jobs growth

User Comment: LEAD Technologies Inc. V1.01 Source: Supplied

UNEMPLOYMENT has stayed steady at 5.4 per cent as the economy continues to outperform expectations with the creation of almost 71,500 jobs last month - the largest amount in almost 13 years.

The surprise result has lessened the prospects of future interest rate cuts but economists warn the strength of the new jobs numbers meant they may need to be revised down in coming months.

The official data released today shows total employment rose 71,500 to 11.628 million in February, seasonally adjusted.

But most of the rise was in part-time positions, which were up 53,700 to 3.511 million while full-time jobs rose only 17,800 to 8.117 million.

Economists had been tipping total employment would rise by only 8000 in February with the unemployment rate ticking up to 5.5 per cent.

ANZ head of Australian economics Justin Fabo said this was a "very strange labour force report'' as despite concerns about the economy slowing the number of employed people has risen by the largest amount since July 2000.

"At face value, the employment numbers look very odd and we expect some significant pullback next month,'' Mr Fabo said.

The strength of the data was boosted by a sharp lift in the participation rate from 65 per cent to 65.3 per cent after a period of workers exiting the jobs market.

CommSec chief economist Craig James said it is clear that while a small number of listed companies reporting job cuts are dominating the headlines rather that a raft of small and medium-sized firms that are getting on with business and hiring new workers.

"The latest figures show that businesses are still more inclined to hire part-time workers and contract staff than take on full-time staff,'' he said. "But that is likely to change over 2013 as firms get more confident about the outlook for their businesses and about the broader economy. The people getting jobs probably prefer full-time work to part-time work, but it still means there is extra spending power for retailers to tap.''

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Dow in fresh record as stocks push higher

New record high for the Dow Jones

US stocks brushed off an early move toward a correction and added to the bull run, with the Dow setting a fresh record for the fifth straight day.

A late thrust upward by Apple shares, which finished 1.4 per cent higher, also took the S&P 500 tantalisingly close to its all-time record.

At the close the Dow Jones Industrial Average was up 50.22 points (0.35 per cent) at 14,447.29. The broader S&P 500 gained 5.04 (0.32 per cent) to 1556.22, still nine points below the all-time closing high set on October 9, 2007.

The tech-heavy Nasdaq Composite meanwhile gained 8.50 points (0.26 per cent) to 3252.87.

Early trade was dimmed by fresh European data on fourth quarter 2012 growth that confirmed the continuing recession, though Greece's contraction came in less severe than earlier estimated. In China, inflation hit a 10-month high of 3.2 per cent in February while growth in industrial output and retail sales slowed.

Apple's spike, to finish at $US437.87, was attributed to market talk that the company could decide to pay shareholders a special dividend, which activist shareholders have been pressing the company for.

Also in tech, shares of Blackberry jumped 14.1 per cent after it announced the US launch date for its new Z10 smartphone, March 22.

Valero Energy led a general fall in energy shares as oil prices remained weak, losing 3.9 per cent.

Retailer Dick's Sporting Goods plunged 10.9 per cent to $US45.11 after missing profit expectations in its fiscal fourth quarter earnings, coming in at $US1.03 a share against an expected $US1.06. The first quarter 2013 forecast was lower than expected at 47 cents a share.

Online gaming house Zynga added 10.1 per cent.

Bond prices were flat. The yield on the 10-year Treasury slipped to 2.06 per cent, while the 30-year yield was 3.25 per cent. Bond prices and yields move inversely. 

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Dow extends record run with fresh highs

(FILES) People walk on February 10, 2009 outside the New York Stock Exchange. US stocks rebounded sharply June 10, 2010 from the previous day's slump as positive economic news in Asia helped ease fears about the strength of the global recovery. The Dow Jones Industrial Average vaulted 214.33 points (2.17 percent) to 10,113.43 in opening trades. The tech-rich Nasdaq index climbed 38.21 points (1.77 percent) to 2,197.06 and the broad-market S&P 500 index advanced 23.08 points (2.19 percent) to 1,078.77.AFP PHOTO/Stan Honda / FILES Source: The Australian

THE Dow pushed to fresh highs today one day after notching an all-time record, even as the Federal Reserve said economic growth continued at a dull pace.

The Dow Jones Industrial Average rose 42.47 points (0.30 per cent) to 14,296.24, a new all-time high.

The broad-based S&P 500 edged up 1.67 (0.11 per cent) to 1541.46, while the tech-rich Nasdaq Composite Index declined 1.77 (0.05 per cent) to 3222.37.

The market gains came despite a mixed report on US economic conditions from the Federal Reserve.

Although the Fed's Beige Book showed "modest to moderate" economic expansion, it noted concerns about the impact of new tax hikes on consumer spending.

Michael James, managing director of equity trading at Wedbush Morgan Securities, said many investors continued to have doubts given the uncertainty in Europe and high unemployment in the US. But momentum was pushing stocks higher.

"The market resilience and the index going higher are pulling people into the market that don't want to be buying," Mr James said. "People are forced to be buying chasing the performance."

Among Dow components, the biggest gainers included Bank of America (up 3.2 per cent), Alcoa (up 2.6 per cent) and Cisco Systems (up 2.3 per cent). Hewlett-Packard, also a Dow component, rose 2.8 per cent on reports of fresh shareholder pressure to revamp the computer maker's board and possibly top management.

Another Dow member, Exxon Mobil, dropped 0.1 per cent after signaling 2013 production would drop one per cent from the 2012 level. Staples increased its quarterly dividend, but sank 7.2 per cent after reporting quarterly revenues and full-year 2013 earnings guidance that missed expectations.

American Eagle Outfitters plummeted 10.1 per cent after signaling that first-quarter earnings would be lower than last year's levels. The company cited "macroeconomic headwinds and unfavourable weather" as drags on consumer spending.

Bond prices fell. The yield on the 10-year Treasury rose to 1.94 per cent from 1.89 per cent lyesterday, while the yield on the 30-year roe to 3.15 per cent from 3.10 per cent. Bond prices and yields move inversely.

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Seek reports record net profit

ONLINE employment group Seek's first half profit has jumped 11.5 per cent, despite challenging conditions in the Australian labour market.

The company on Wednesday posted a record net profit of $67.5 million for the six months to December 31, up from $60.6 million in the previous corresponding period.

Seek also lifted its total revenue by 32 per cent to $275.3 million, from $208.1 million.

However, earnings from the company's Australia and New Zealand employment business remained relatively flat at $120.9 million.

"This was another record half year result that was achieved despite weak macro-conditions and a re-investment focus in our international businesses," chief executive Andrew Bassat said in a statement.

Revenue from Seek's employment business dropped two per cent compared to the same period in 2011/2012, reflecting the fewer number of job ads in the first half.

On the other hand, the company's education arm - which includes Seek Learning and Think - more than doubled its earnings before tax, interest, depreciation and amortisation (EBITDA) to $13.62 million from $5.46 million.

Seek on Wednesday also announced the finalisation of its transaction with Chinese employment website Zhaopin.

The deal, worth $US132.8 million ($A129.62 million), sees Seek increase its stake in the company from 55.5 per cent to 78.2 per cent.

"Zhaopin is a market leader in China and has very exciting growth prospects," Mr Bassat said.

"We expect Zhaopin to provide Seek's shareholders with strong earnings growth for many years."

The company expects net profit for the second half of the 2012/2013 financial year to be "moderately greater" than the first.

"Seek's portfolio of leading businesses are well-positioned for medium- to long-term earnings growth," Mr Bassat said.

Seek will pay shareholders a fully-franked final dividend of 10 cents per share, up 20 per cent from the previous corresponding period.

View the original article here

Seek reports record net profit

ONLINE employment group Seek's first half profit has jumped 11.5 per cent, despite challenging conditions in the Australian labour market.

The company on Wednesday posted a record net profit of $67.5 million for the six months to December 31, up from $60.6 million in the previous corresponding period.

Seek also lifted its total revenue by 32 per cent to $275.3 million, from $208.1 million.

However, earnings from the company's Australia and New Zealand employment business remained relatively flat at $120.9 million.

"This was another record half year result that was achieved despite weak macro-conditions and a re-investment focus in our international businesses," chief executive Andrew Bassat said in a statement.

Revenue from Seek's employment business dropped two per cent compared to the same period in 2011/2012, reflecting the fewer number of job ads in the first half.

On the other hand, the company's education arm - which includes Seek Learning and Think - more than doubled its earnings before tax, interest, depreciation and amortisation (EBITDA) to $13.62 million from $5.46 million.

Seek on Wednesday also announced the finalisation of its transaction with Chinese employment website Zhaopin.

The deal, worth $US132.8 million ($A129.62 million), sees Seek increase its stake in the company from 55.5 per cent to 78.2 per cent.

"Zhaopin is a market leader in China and has very exciting growth prospects," Mr Bassat said.

"We expect Zhaopin to provide Seek's shareholders with strong earnings growth for many years."

The company expects net profit for the second half of the 2012/2013 financial year to be "moderately greater" than the first.

"Seek's portfolio of leading businesses are well-positioned for medium- to long-term earnings growth," Mr Bassat said.

Seek will pay shareholders a fully-franked final dividend of 10 cents per share, up 20 per cent from the previous corresponding period.

View the original article here