YOU ARE HERE: LAT HomeCollectionsStock Indexing

Stock Indexing

Investing with Rex Sinquefield and David Booth is a form of existentialism: A stock exists, therefore they own it. Their strategy also has been a form of masochism for seven years running, because the stocks that they buy are those of small companies--which have painfully lagged the broad market since 1984. Sinquefield and Booth's $5-billion investment firm, Santa Monica-based Dimensional Fund Advisors, is the nation's largest index investor in small stocks.
August 15, 2013 | By Andrew Tangel and Tiffany Hsu
NEW YORK - Encouraging signs for the labor market caused alarm on Wall Street as investors sped up a broad sell-off, fueled by worries the Federal Reserve will soon scale back its stimulus. Major U.S. indexes closed sharply lower Thursday as yet another hopeful sign of a recovering U.S. economy led traders to believe the central bank will begin slowing its morphine drip of easy money as early as next month. "Investors are waking up to the reality that this is going to be happening, and September is not very far away," said Jack Ablin, chief investment officer at BMO Private Bank.
In the realm of finance, there's no term quite as widely used or as constantly quoted as the Dow . To many, the Dow Jones industrial average--an index of just 30 stocks-- is the market. The stock market--composed of more than 6,700 issues--is the Dow. And the Dow has almost mystical qualities as an indicator of health and a forecaster of economic and political news.
August 9, 2013 | By Andrew Tangel
NEW YORK - The stock market's longest weekly winning streak in a year came to an end as summer doldrums set in on Wall Street. Major U.S. indexes closed moderately lower Friday, with the Dow Jones industrial average sagging 72.81 points, or nearly 0.5%, to 15,425.51. For the week, the Dow and other indexes finished down about 1%, ending a string of six straight weekly gains. Some analysts saw the pullback as a temporary lull amid minimal economic data. Trading volume was especially light as money managers started their annual August getaways.
July 24, 1996 | From Times Staff and Wire Reports
A blue Monday gave way to an even bluer Tuesday on Wall Street as investors continued to exit the stock market. The Dow Jones industrials fell 44.39 points, or 0.8%, to 5,346.55, dropping just below the close on July 15, when the index plunged 161 points. The Dow's Tuesday close was its lowest since Jan. 29. The Nasdaq composite index of mostly smaller stocks surrendered the last of its 1996 gains, plummeting 32.32 points, or 3%, to 1,049.07, its lowest finish since late-1995.
Canadian financial markets rallied strongly across the board Tuesday as the federal government and banks lowered key interest rates in the wake of voters' narrow defeat of a referendum that would have allowed Quebec to leave Canada. Investors, who in recent weeks had retreated to the sidelines, were relieved with the outcome and poured money back into Canadian investments, giving stocks their biggest single-day boost in eight years. Bond and currency markets also rallied.
February 14, 1996 | TOM PETRUNO
After last year's stunning stock price gains, many investors were expecting--or even hoping for--a breather early this year. The market had other ideas. Despite a mild pullback in prices Tuesday, share values overall are near record highs. A look at how and why stocks have surged again, and the outlook: * Q: How much has the stock market advanced? * A: Since Jan. 1 the Standard & Poor's 500 index of blue chip stocks has jumped 7.2%, after soaring 34.1% in calendar 1995.
January 10, 1996 | TOM PETRUNO
The never-say-die bull market is suddenly clutching its chest and wheezing. And if Tuesday's stock sell-off is followed by more of the same today, some investors may start wondering whether--and how--to look for some shelter from a possible market storm. Should stocks dive further, the first point to remember is that this bull market is way overdue for a normal "correction" that could shave 10% or more off major indexes like the Dow industrials. Measured from the Dow's recent peak of 5,216.
November 20, 1996 | TOM PETRUNO
How does that old line go? "I love you more today than yesterday. But not as much as tomorrow." That pretty much sums up the way Wall Street feels about big-name, blue-chip stocks as they roll from one new high to another this fall. Consider IBM shares, which at $154.125 as of Tuesday--up $7.375 for the day--have already gained 69% this year. What's the stock really worth? Try $170 sometime in the next 12 months, argues Steven Milunovich, computer industry analyst at Morgan Stanley & Co.
October 30, 1996 | TOM PETRUNO
Healthy economic growth isn't everything when it comes to fueling stock market gains. In fact, good growth hasn't counted for much of anything in Asia since 1993. For the third straight year, the majority of Asian stock markets are lagging far behind the U.S. market's gains. So far in 1996, only three Asian markets--Taiwan, Hong Kong and Malaysia--are beating the 13.9% gain in the U.S. Standard & Poor's 500-stock index.
March 28, 2013 | By Walter Hamilton and Andrew Tangel, Los Angeles Times
NEW YORK - The new high in the Standard & Poor's 500 index is a fitting exclamation point for an impressive first quarter in the stock market. The index of 500 large U.S. companies capped a four-year rally Thursday, recouping all of its losses from the 2008 global financial crisis. The milestone underscored investors' enthusiasm over the increasingly buoyant U.S. economy. The S&P 500 is one of the last major market gauges to hit a new high. Other indexes, including the Dow Jones industrial average, already eclipsed their previous peaks from late 2007.
March 6, 2013 | MICHAEL HILTZIK
You've heard the old joke about the stockbroker showing a friend all the luxuries he's bought with the commissions paid by his customers -- big house, big car, big yacht. And the friend asks, "But where are the customers' yachts?" The joke needs updating. With the Dow Jones industrial average hitting a record, as it did Tuesday, the question is "Where's the workers' payoff?" The Dow's record, in and of itself, doesn't mean much. It's a narrow measure of the stock market's health, viewed through the prism of a basket of 30 stocks.
February 13, 2013 | By Andrew Tangel, Los Angeles Times
NEW YORK - Wall Street may seem like its old self again. Financial giants including Goldman Sachs Group Inc. raked in mega profits in 2012. Bonuses are expected to fatten more Wall Streeters' pockets than last year. The Dow Jones industrial average has been flirting with an all-time high after topping 14,000 for the first time in half a decade. But droves of recent layoffs tell a different story. Indeed, analysts see a Wall Street that has shrunk in the four years since the financial crisis in part because of new regulations aimed at making the financial sector safer.
November 25, 2012 | By Jeffrey Fleishman and Reem Abdellatif, Los Angeles Times
CAIRO - Security forces built a wall to contain stone-throwing protesters and Egypt's stock exchange tumbled Sunday amid growing unrest over President Mohamed Morsi's decision to expand his powers in a nation dispirited and angered by months of uncertainty. The country's main stock index fell nearly 10% in one of the most bruising days of trading since the 2011 uprising that toppled longtime autocrat Hosni Mubarak. Morsi's power grab left traders fearful that foreign investors - desperately needed to rescue Egypt's troubled economy - would shy away from the nation in light of the latest spasm of political instability.
November 24, 2012 | By Andrew Tangel, Los Angeles Times
Forget the malls. Investors snapped up shares on Black Friday, giving the stock market its best week of the year. Traders were in a buying mood amid early reports from retailers like Wal-Mart Stores Inc. suggesting a strong turnout on the official start of the holiday shopping season. The retail industry makes about 40% of its annual sales during the next few months, and that jump in consumer spending could mean a big boost to the U.S. economy. Major U.S. stock indexes ended a shortened trading session up more than 1.3% on the day and 3% for the week.
October 11, 2012 | Walter Hamilton
The specter of anemic corporate earnings has put a temporary halt to the stock market's summer winning streak. The Dow Jones industrial average fell for a third consecutive day Wednesday as investors faced the prospect that quarterly profits may decline for the first time since 2009. The Dow slipped nearly 129 points, its second straight triple-digit setback, after Alcoa Inc. warned that weakened growth in China has cut into demand for aluminum. That renewed concerns that economic troubles in Asia and Europe could slice into profits of U.S. companies this year and next.
August 18, 1995 | TOM PETRUNO
Stocks of smaller companies are getting more bang from the buck--the rising dollar, that is. With the U.S. currency's sharp rally this week, many investors are pulling out of blue-chip multinational stocks that could be hurt by the dollar's turn and steering into smaller stocks whose fortunes generally depend far less on overseas business.
June 23, 1995 | TOM PETRUNO
Add Vanguard Group Chairman John C. Bogle to the list of nervous Wall Street pros trying to yank the punch bowl from the stock market's party. Worried that Vanguard's stock-index mutual funds are attracting too many investors who are only chasing short-term gains, the company is sending a cautionary letter--penned by Bogle--to all recent buyers of the funds and to people who ask for information about them. "We are concerned . . .
September 29, 2012 | By Andrew Tangel, Los Angeles Times
NEW YORK - Investors plowed $900 billion into the stock market in the third quarter, sending major indexes more than 4% higher after bold moves by central banks to shore up the European and U.S. economies. The Dow Jones industrial average ended the third quarter up 4.3% to 13,437.13, the Standard & Poor's 500 index rose 5.8% to 1,440.67, and the technology-heavy Nasdaq composite soared 6.2% to 3,116.23. The rally has now seen blue chip stocks rise 11 times during the past 12 months.
Los Angeles Times Articles