NEW YORK, March 14 (Reuters) - The
Dow Jones industrial average extended its winning streak to 10 days on Thursday,
a string of gains last seen in late 1996, and ended at another record high as
investors were encouraged by data showing the labor market's recovery was
improving.
The S&P 500 took a late-day run
at its record closing high of 1,565.15, but ended just 2 points away. The
30-stock Dow Jones industrial average has been setting record highs since last
week, when it rallied on March 5 to initially surpass its previous lifetime
closing peak set in October 2007.
U.S. equities have accelerated their
run higher without a major consolidation since the start of the year, driven by
improvement in the economy and the Federal Reserve's continuation of its easy
monetary policy.
"It's simply a natural
progression for prices to move to new highs in order for the market to advance.
I don't think it's scaring investors," said Tim Ghriskey, chief investment
officer of Solaris Group in Bedford Hills, New York.
"Fund flows really have
reversed direction, and money started moving out of money markets and some from
fixed income to equities. This kind of trend doesn't change easily so we can
expect a lot more to come in."
The Dow Jones industrial average gained 83.86 points, or 0.58 percent, to 14,539.14, a record closing high. The
Standard & Poor's 500 Index rose 8.71 points, or 0.56 percent, to 1,563.23, about 2 points from its record
closing high of 1,565.15, set on Oct. 9, 2007.
Oil Futures - NEW YORK, March 14 (Reuters) - U.S.
oil futures rose to the highest settlement price in two weeks on Thursday as
data showed an improving U.S. labor market in the world's largest oil consumer.
The number of Americans filing for
unemployment benefits dropped unexpectedly last week, data from the U.S. Labor
Department showed.
"As long as we have signs that
economic conditions are not going to slow, we'll see improvement," said
Gene McGillian, analyst and broker with Tradition Energy in Stamford,
Connecticut.
Stock market gains also helped
support crude oil prices. The Dow Jones industrial average extended gains for a
10th straight day on the labor market data.
The U.S. dollar retreated from a
seven-month high against a basket of currencies as some currency traders cashed
in profits.
A weaker U.S. dollar helped buoy
U.S. crude oil prices. Because crude is priced in U.S. dollars, when the value
of the currency drops, oil generally becomes more expensive to offset the
dollar's weakness.
U.S. crude oil futures settled 51 cents higher at $93.03 per barrel.
Brent crude for April settled 90 cents per barrel higher, or 0.83 percent, at $109.42 as
the contract expired.
Oil slipped earlier in the session
as investors focused on a subdued outlook for demand growth in the United
States and China, easing supply concerns.
Two of the three most closely
watched oil forecasters - the International Energy Agency and the U.S. Energy
Information Administration (EIA) - lowered global oil demand growth forecasts
this week. The third, OPEC, flagged downside risks to the outlook.
The EIA on Tuesday cut its 2013
world oil demand growth forecast by 40,000 barrels per day to 1.01 million bpd.
Comments by China's central bank on
stabilizing inflation expectations reinforced concern it may drop its
pro-growth policy before economic expansion gathers full momentum. The remarks
pressured most markets in Asia.
Supply concerns have taken a back seat
for now.
South Sudan said on Tuesday it would
be ready to restart oil production, which was shut down for more than a year,
within three weeks, and on Wednesday a U.S. government report said crude
stockpiles rose last week.
OPEC production is expected to trend
higher as Saudi Arabia adds to supplies in coming months. Saudi Arabia expects
to raise its oil output in the second quarter, oil industry sources said last
month.
Saudi cut back its output in the
last two months of 2012 because of weaker Asian demand and a lower domestic
need for crude in power plants, among other factors.
CBOT Soybean - March 14 (Reuters) - Soybean futures on the Chicago Board of Trade fell for a third
straight session as the expanding Brazilian soybean harvest eased supply
worries and export demand from top buyer China slowed, traders said.
·
The May
soybean contract dipped below its 50-day moving average at $14.33, dropping
to $14.29, but settled above it at $14.35-1/2.
·
Traders
noted talk that falling soy crush margins in China are limiting Chinese demand
for U.S. and Brazilian soybeans.
·
Brazilian
dock workers postponed a nationwide strike planned for March 19 but are
considering a strike on March 26. The move eased concerns about worsening
shipping delays as Brazil aims to export its record-large soy crop.
·
The
average trade estimate ahead of the National Oilseed Processors Association's
February U.S. soy crush report on Friday was 141.6 million bushels, down from
NOPA's January figure of 158.195 million.
·
Trade
expects NOPA to report a slight decline in U.S. soyoil stocks, with an average
estimate of 2.771 billion lbs, down from NOPA's January figure of 2.823
billion.
·
USDA
reported export sales of U.S. soybeans in the latest week at 657,700 tonnes for
2012/13 and 126,000 tonnes for 2013/14. The combined-year total of 783,700
tonnes was the lowest in three weeks.
·
USDA
reported weekly export sales of soymeal at 51,700 tonnes, below expectations,
and soyoil sales at 6,000 tonnes, roughly in line with expectations.
BMD CPO - SINGAPORE, March 14 (Reuters) -
Malaysian palm oil futures fell to a two-month low on Thursday, dropping for a
third straight session on persistent weakness in soy markets, while traders
watch for upcoming export data to gauge demand.
U.S. soybean prices have been
pressured by poor exports and increased competition from South American
supplies as traders said Brazilian beans were now being offered at competitive
prices.
Palm oil investors are still
counting on a seasonal drop-off in production that could ease stocks and
support prices. Export demand is also in focus as cargo surveyors will release
Malaysia's March 1-15 export data on Friday.
"We are all expecting the
market to move up due to the low production season but the weakness from the
soy side is pulling down palm as well," said a Singapore-based trader with
a global commodities house.
Palm oil tends to track soybean oil
prices closely as they are substitutes for each other.
The benchmark May contract on the Bursa Malaysia Derivatives Exchange had slid 1.3 percent to 2,366
ringgit ($760) per tonne, just above its intraday low of 2,360 ringgit, the
lowest level since Jan. 14.
Total traded volume stood at 29,364
lots of 25 tonnes each, slightly higher than the usual 25,500 lots.
Cargo surveyor Intertek Testing
Services said Malaysia's export demand for the March 1-10 period was almost
flat with a month ago, while another cargo surveyor, Societe Generale de
Surveillance, reported a slight 2.2 percent increase for the same period.
Palm oil prices may face further
pressure as traders said significantly lower crude palm oil shipments and
record high stocks at destination ports may weigh on exports for the rest of
the month.
In other markets, Brent crude held
steady below $109 a barrel on Thursday on concerns over demand growth from top
two consumers China and the United States, while a firm dollar added pressure
on prices.
In other vegetable oil markets, U.S.
soyoil for May delivery edged down 0.7 percent in late Asian trade.
The most-active September soybean oil contract on the Dalian Commodities Exchange had lost 0.7 percent.
Regional Equities - BANGKOK, March 14 (Reuters) -
Southeast Asian stock markets mostly ended weak on Thursday as some worries
about the euro zone weighed on broader Asia, with overbought Indonesia falling
to its lowest in more than a week and the Philippines sliding as its central
bank kept the benchmark rate intact.
Jakarta's Composite Index ended down 1 percent at 4,786.37, extending losses for a third session after
setting a record close of 4,874.49 on March 8.
Its 14-day relative strength index
had stayed higher than an overbought mark of 70 and above since mid-Feb and
ended at 72.27 on Thursday, higher than most of its peers.
The market noted $2.1 billion in
foreign inflows year-to-date, topping $1.64 billion in inflows in full year
2012, when it relatively underperformed others in Southeast Asia.
The Philippines' main index was down 1.2 percent, its fourth straight session of loss, ending at 6,694.71,
the lowest close since March 4. Its central bank kept its benchmark interest
rate steady at a record low of 3.5 percent as expected.
Bucking the trend, the Ho Chi Minh
Stock Exchange's VN Index was up 0.3 percent after two sessions of
losses. The Thai index pared early losses to end up 0.5 percent at 1,586.79, its highest close since
January 1994.
Last month, CLSA upgraded its
end-2013 target for the benchmark index to 1,650, partly reflecting higher
confidence that Thailand's infrastructure investment will materialise.
The MSCI index of Asia-Pacific shares outside
Japan shed 0.3 percent while the MSCI
index of Southeast Asia was down 0.4 percent.
