The S&P Approaches All Time Highs as Investors Fear Missing the Boat

“The Standard & Poor’s 500 Index approached a record high and a gauge of market volatility slipped to the lowest level in almost six years as Apple Inc. (AAPL) rallied and banks advanced.

Apple jumped 1.2 percent, erasing earlier losses. BlackBerry surged 14 percent following a report that Lenovo Group Ltd. may consider buying the smartphone maker. Ford Motor Co. added 2.9 percent as deliveries in China jumped. Dick’s Sporting Goods Inc. tumbled 11 percent after forecasting profit that was less than analysts estimated. Kroger Co. lost 1 percent after being downgraded by a Hilliard Lyons analyst.

The Standard & Poor’s 500 Index added 0.2 percent to 1,554.41 at 3:29 p.m. in New York, trading within about 11 points of its record. The Dow climbed 29.68 points, or 0.2 percent, to 14,426.75, heading toward its fifth straight record close. The Chicago Board Options Exchange Volatility Index dropped to its lowest level since 2007. Trading in S&P 500stocks was 18 percent lower than the 30-day average.

“The path of least resistance continues to be higher,” Jordan Irving, who helps oversee $175 million at Irving Magee Investment Management in Philadelphia said in a phone interview. “The latest batch of economic data out of the U.S. was okay. If you’re lagging you might want to try to get a little juice in there to catch up.”

More than $10 trillion has been restored to U.S. equity values during the four-year bull market as the S&P 500 more than doubled from the bottom in 2009, fueled by corporate earnings that topped estimates and monetary stimulus from the Fed. The Dow recouped all its losses from the financial crisis in less than 65 months, more than a year faster than the recovery from the Internet bubble.

Volatility Index

The CBOE Volatility Index, which measures the cost of using options as insurance against declines in the S&P 500, dropped 6.6 percent to 11.76 today, the lowest level since April 2007. The gauge, known as the VIX, fell 18 percent last week and is down 35 percent for the year….”

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