S&p 500 Reaches Record Highs
US stock markets posted gains across the board at Monday’s close, as the S&P 500 surpassed 2,000 points for the first time ever, reaching a high for the day of 2,001.95, before closing at a new record high of 1,998.06.
Monday, August 25, 2014
The Nasdaq also hit its highest mark since March 2000 at 4,554.35, Bloomberg reported. “This number, 2,000, is a pretty significant number from psychological and financial points,” Joe Bell, senior equity analyst at Schaeffer’s Investment Research Inc. in Cincinnati, told Bloomberg. “Perhaps we might reach a little bit overbought status, and it looks like the index is going to take a breather there.”
Burger King to buy Tim Hortons Inc.
Nine out of 10 major S&P 500 groups gained today, according to Bloomberg. Most notably, fast food giant Burger King jumped 21% upon announcing plans to acquire coffee and donut chain Tim Hortons of Canada. Burger King also plans on moving its headquarters to Canada.
Tim Hortons is the largest donut shop in Canada, with 3,500 locations nationwide, and hopes Burger King will bring them greater notoriety in the United States. They intend to add 4,100 more shops in Canada. The merger would yield the world’s third-largest fast food chain. Some analysts speculate the deal is really about the difference in taxes – Canada’s corporate rate is 26.5% compared to the United States’ 40%.
Since its closing low in 2009, the S&P 500 is up 195%, according to Reuters. Comparatively, the Dow has risen 161%, while the Nasdaq has grown 265% with the help of its focus on tech companies.
With the gains, investors are worried. As the Federal Reserve backs off on its quantitative easing program, many believe stocks will suffer. David Joy, chief market strategist of Ameriprise Financial in Boston classifies himself as “more of a seller than a buyer.”
Additionally, the majority of the movement in the market was the result of the biggest players, indicating that individual traders may not have benefited as much as it may seem.
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