Stocks post best September in 71 years

dow month.top.pngClick chart for more market action. By Blake Ellis, staff reporter


NEW YORK (CNNMoney.com) -- U.S. stocks fizzled Thursday, but that didn't stop the market from logging its best September in decades.

Dow Jones industrial average (INDU) slipped 47 points, or 0.4%, after soaring more than 100 points at the start of trading. The S&P 500 (SPX) fell 4 points, or 0.3%, and the Nasdaq (COMP) ticked down 8 points, or 0.3%.

Economic jitters have kept stocks from breaking out of a narrow range this week. And while upbeat readings on employment and economic growth helped spark an early rally Thursday, gains subsided as worries about the euro zone bubbled up.

Despite the stomach churning month, stocks ended September on a high note. The Dow jumped 7.7%, the biggest September gain in 71 years. The S&P also posted the biggest gain since 1939, rising 8.7% in the month, while the Nasdaq climbed 12%.

All 30 Dow components were on track to end September with gains, as of Wednesday's market close. Caterpillar (CAT, Fortune 500), Alcoa (A, Fortune 500), GE (GE, Fortune 500), Home Depot (HD, Fortune 500) and 3M (MMM, Fortune 500) are among the biggest gainers.

And only 18 of the S&P 500 were down on the month. Carmax (KMX, Fortune 500), JC Penney (JCP, Fortune 500) and Office Depot (ODP, Fortune 500) are among the biggest gainers on the broader index.

"There was a lot of talk this summer about a double-dip recession, and while it's true things have slowed down, the technicals have really changed and it's a much more healthy environment now," said Kenny Landgraf, principal at Kenjol Capital Markets.

Economy: The number of Americans filing for unemployment insurance edged down to 453,000 in the week ended Sept. 25, according to the Labor Department. The figure was slightly better than the 457,000 jobless claims economists had expected.

"The big bash against this recovery has been that it's a jobless recovery ... so investors are obviously going to take that [report] well," said Landgraf.

Meanwhile, the Commerce Department released its final reading on second-quarter gross domestic product, raising it slightly to a gain of 1.7% from the previously reported 1.6%.

Economists surveyed by Briefing.com had expected the figure to remain unchanged.

World markets: Despite the wave of upbeat readings on the U.S. economy, bad news from overseas reignited fears about a slowing global recovery.

Ireland's central bank unveiled a bank bailout that could reach about $46 billion. Ireland's budget deficit is on track to hit 10 times the European Union guidelines for eurozone members. Meanwhile, Moody's downgraded Spain's credit rating.

"These are just further signs that we've covered up the European financial situation and tried to push it aside, but it's really still a big issue," said Dean Barber, president of Barber Financial group.

European stocks slumped. France's CAC 40 fell 0.6%, Britain's FTSE 100 dipped 0.4% and Germany's DAX lost 0.3%.

Asian markets shares ended mixed. The strong yen continues to plague Japanese stocks, with the Nikkei ending down 2%. The Hang Seng in Hong Kong lost 0.1%, while the Shanghai Composite rose 1.7%.

Companies: AIG (AIG, Fortune 500) took a major step toward paying back its government bailout Thursday, after announcing an agreement to pay down its debt to U.S. taxpayers. Part of this includes the insurer's plan to sell its Japan-based units for $4.8 billion. Shares of AIG gained more than 4%.

Shares of Johnson & Johnson (JNJ, Fortune 500) slipped less than a percent after CEO William Weldon took responsibility for the company's recall issues and admitted to hiding a Motrin recall effort.

Overall, Johnson & Johnson's stock has emerged unscathed from the recall issue as investors have largely shrugged off the issue since there were no reports of people getting sick.

Currencies and commodities: The dollar rose against the euro and the British pound, but fell versus the Japanese yen.

On Wednesday, Congress overwhelmingly passed legislation to impose tariffs on China for undervaluing its currency, the yuan, in order to keep export prices cheap.

Gold futures for December delivery slipped 70 cents to settle at $1,309.60 an ounce, after hitting another intra-day trading record of $1,316.20 an ounce earlier in the session.

Crude oil futures for November delivery gained $2.11 to settle at $79.97 a barrel.

Bonds: The price on the benchmark 10-year bond fell, pushing up the yield up to 2.52% from 2.5% late Wednesday. To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Overnight Avg Rate Latest Change Last Week
30 yr fixed3.98%4.08%
15 yr fixed3.09%3.11%
5/1 ARM3.20%3.22%
30 yr refi4.06%4.16%
15 yr refi3.17%3.20%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Index Last Change % Change
Dow 17,810.06 91.06 0.51%
Nasdaq 4,712.97 11.10 0.24%
S&P 500 2,063.50 10.75 0.52%
Treasuries 2.32 -0.02 -0.86%
Data as of Nov 23
Company Price Change % Change
Bank of America Corp... 17.12 0.12 0.71%
Kinder Morgan Inc 39.75 -0.17 -0.43%
Apple Inc 116.47 0.16 0.14%
Intel Corp 35.59 -0.36 -1.00%
Microsoft Corp 47.98 -0.72 -1.48%
Data as of Nov 21

Sections

This arrangement, announced Friday, illustrates how the lines have blurred between traditional TV networks and newfangled options like Netflix. More

China's central bank surprised investors last week with its first rate cut in more than two years. But get used to that -- analysts say more cuts are in the pipeline. More

Regin is malware has been lurking in computers for as long as six years, according to Symantec. But experts don't know much about where it is from, what it does and who has been targeted. More

Obama doesn't have the authority to create a startup visa, but part of his reform announcement could include a workaround for entrepreneurs: 'parole status.' More

Nearly half of all Americans say there's a chance they'll have to work during a holiday between Thanksgiving and New Year's, according to a new poll. And one in four say they'll have to work whether they want to or not. More

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.