Investors increased bets on products meeting the most in eight months as signs of U.S. economic recovery has strengthened demand prospects and drove rallies in crude oil, cotton, copper and gold.
"People accept the fact that we have a growing economy, and there is evidence that the economic data," saidSal Gilbertie, who helps manage $ 69 million of assets, president and chief investment officer of Teucrium Trading LLC inSanta-Fe, New Mexico. "It gives people a reason to believe that there will be strong economic demand for base products."
Market News
Dow retreats from 10-day rally; JPMorgan weight
Stocks slipped on Friday, ending the longest winning streak Dow Jones Industrial Average since 1996, as investors paused slightly below the record S & P 500.
JPMorgan Chase shares decline after the bank was hit by a one-two punch of bad news also weighed on the market.
On the day after for 2 points for all time closing high 1,565.15 hit in October 2007, the test S & P 500 ended the session on Friday around 5 points away. For the week of S & P 500 rose 0.6 percent.
Dow snapped its 10-day winning streak, as he racked up a number of historic highs. Stocks have rallied since the beginning of the year on signs of improvement in the economy and support the efforts of the Federal Reserve to support the recovery.
Investors can use the pause to consolidate before pushing rates higher again in the market, said Cam Albright, director of asset allocation at Wilmington Trust Investment Advisors in Wilmington, Delaware.
"I do not think that the movement of one or two days" is really going to change the main impetus to the market, which I still think is pretty strong at the moment, "said Albright.
JPMorgan Chase & Co was the biggest obstacle S & P 500, and one of the biggest weights on the Dow, falling 1.9 percent to $ 50.02.
The Federal Reserve said JPMorgan and Goldman Sachs Group Inc, that they need to correct deficiencies in the way they determine capital to shareholders, although the central bank is still approved their plans for the purchase of shares and dividends.
Senate report alleged that JPMorgan ignored risks misled investors wrestled with the regulatory authorities and tried to bend the rules, as is the case with mushrooms losses in its portfolio of derivatives. Former senior official JPMorgan told lawmakers on Friday she was not to blame for the loss.
Unlike Goldman shares recovered from early weakness to gain 0.5 percent to $ 154.84. The stock of rival Bank of America rose 3.8 percent to $ 12.57. S & P financial sector index rose 0.3 percent.
Index Dow Jones Industrial Average slipped 25.03 points, or 0.17 percent, to 14,514.11 at the close. 500 Index Standard & Poor shed 2.53 points, or 0.16 percent, to 1,560.70. The Nasdaq Composite Index fell 9.86 points, or 0.30 percent, to end at 3,249.07.
For the week Dow rose 0.8 percent and the Nasdaq gained just 0.15 percent.
Tom was reliable because "four witches" - quarterly settlement and expiration of four different types of March equity futures and options contracts.
Approximately 8.2 billion shares traded on the New York Stock Exchange, Nasdaq and NYSE MKT, compared with 2012 average daily volume of about 6.45 billion closing.
Support for Apple Inc Nasdaq shares rose 2.6 percent to $ 443.66.
These services Thomson Reuters Lipper showed investors in U.S. funds poured $ 11.26 billion of new money into equity funds in the last week, the highest since the end of January.
Busy day of economic reports reinforced investors that the economic recovery has momentum to it. Industrial production bounced back in February, although the rate of growth of industrial production in the state of New York has cooled slightly in March and consumer sentiment fell.
S & P 500 index of retail sector lost 0.8 percent after consumer sentiment data Thomson Reuters / University of Michigan.
Consumer prices registered the biggest increase in nearly four years, as the cost of gasoline rose. But a smaller increase in consumer price index for the main U.S., which excludes volatile food and energy prices, has left the door open for the Fed to buy more bonds program, which helped rally in the stock market. Reuters.com
Currencies
Euro sinks, yen squeezed higher on fears of Cyprus deal
The euro fell and traders squeezed yen rose sharply on Monday in Asia as news that a bailout plan for Cyprus include taxation of investors was accepted as a dangerous precedent that could eventually cause the bank operates in other countries of the region.
Euro zone finance ministers want to tap investors Cyprus to the country will receive 10 billion euros ($ 13 billion) bailout, a decision that led to an increase in demand for cash after it was announced on Saturday morning. Cyprus has been working on the last minute proposal to soften the blow, after the parliamentary vote on the measure was postponed until Monday, the government said.
"There are unclear points about Cyprus, so that's why no one wants to buy the euro now, at least in Tokyo and London sessions" before voting in Cyprus, said Masashi Murata, a currency strategist at Brown Brothers Harriman in Tokyo.
The single currency was changing hands at $ 1.2901, down 1.3 percent from the level in North America on Friday after falling as low as $ 1.2888 on trading platform EBS, its lowest since December 10. Support said to lie within the 200-day moving average, currently at $ 1.2872.
Euro last bought 122.34 yen, up 1.9 percent. 55-day moving average support while correcting the yen at the end of last month, and a close below the average, now at 121.69 yen, could foreshadow a deeper correction.
The euro also lost ground on the Swiss franc to 1.2178 francs from around 1.2275.
Yen shot up across the board as speculative traders were caught severely lacking currency, and had to quickly unwind carry trade positions.
Borrowing in yen to buy higher-yielding assets were heavily favored trade in recent weeks on expectations of more aggressive easing steps from the Bank of Japan.
Japan's parliament on Friday approved Haruhiko Kuroda as the next governor of the Bank of Japan, and Kikuo Iwata and Hiroshi Nakaso his deputies, putting in place management to actively pursue its 2 percent inflation target.
Improving U.S. economy also relies dollar in recent weeks. Data on Friday continued to show growth in U.S. manufacturing, while U.S. consumer sentiment weakened to its lowest in more than a year, while inflation picked up.
"The U.S. economy remains solid," Murata Brown Brothers Harriman said. "I do not think the dollar-yen will fall much below 93 or 92 yen, and is likely to show gradual recovery today"
The dollar fell to 94.80 yen from 95.38 yen late Friday. It fell to 93.45 yen, the lowest since March 6, departing from 3-1/2-year peak 96.71 hit on March 12.
The Australian dollar has lost almost two full yen to a low of 97.74 yen, the lowest since March 8, in volatile early trading to stabilize at 98.06.
The U.S. dollar rose 0.7 percent against a basket of currencies to 82.792.
"Special case"
The leaders of the euro zone and Cyprus agreed Saturday that investors should be taxed up to 10 per cent - 6.7 per cent of the sums below € 100,000 and 9.9 percent on the numbers above - to raise 5.8 billion euros, so that the island nation could have rights to international financial aid.
Cyprus is discussing with creditors to change the tax rate to 3.0 per cent on deposits of less than € 100,000, and 12.5 percent for those above it, the source said.
Taxation of investors will be a radical departure from the usual practice, and will give investors in other indebted countries incentives to shift their money in the banks of the EU countries with lower financial risk management systems, such as Germany.
Some strategists expected loss from limited movement in the long term, but, nevertheless realized that it is clearly a short-term sell signal for the euro.
"The news in Cyprus may well cause some adverse reactions euro on fears of capital flight from the periphery of Europe, but if managed properly, it should not spark the beginning of contagious bank run," said Brian Martin, senior strategist at ANZ in London.
"We do not think it will cause a steady run on bank deposits in the euro area, as Cyprus there is a special case."
However, at this point, he recommended selling the euro against the Swiss franc, the yen and the pound sterling, and the sale of bonds of peripheral EU countries.
He said one of the first signs that a deal Cyprus contaminating be increased peripheral bonds. Reuters.com
