May 14 - Summary of business headlines: Stocks advance further into record territory as investors snap-up large cap financials, tech, energy, and just about everything else. BlackBerry and Nokia try to stay alive with new models, but investors are not impressed. Conway G. Gittens reports.
Wall Street sprung to life after a few quiet days of trading. The Dow and the S&P 500 had their biggest one-day gains since May 3 - closing at record highs. The Nasdaq was up as well. The path of least resistance is up and so after a few days of meandering - investors were back in a buying mood. Where is the money coming from? Maybe not where you think, according to fund flow data compiled by Lipper's Tom Roseen. SOUNDBITE: TOM ROSEEN, HEAD OF RESEARCH SERVICES, LIPPER (ENGLISH) SAYING: "It's certainly not coming from bonds and I think that's the underlying premise here. A lot of people were thinking there was going to be a big rotation, people were going to get rid of their bond funds, buy equity funds. But what we are finding is about $100 billion (this is year-to-date) $100 billion come into equity funds and at the same time about $108 billion has flowed into fixed income. Where we think it's coming? With $124 billion of outflows in money market funds - it's from underneath the mattress, savings accounts, and other places they've been stashing money for the last year or two." The big percentage movers in the Dow were spread across several sectors: Bank of America, American Express, Chevron, Boeing and Microsoft Research in Motion will now give access to its popular BlackBerry Messenger service to non-BlackBerry users, launch a mid-tier phone aimed at emerging markets, and finally give Americans a new model with a physical keyboard. The U.S. launch date for the Q10 is later than expected and that was one of the reasons U.S. listed shares dropped almost 4 percent. Sony is being urged to spin-off its lucrative entertainment unit. Activist investor Dan Loeb, Sony's biggest shareholder, says the slow-growing manufacturing unit is holding back the media properties, which include the film studio and a music label. U.S. listed shares of Sony surged to a 14-month high. Over in Europe, Nokia took the wraps off a phone made of metal. Investors were less than impressed - pushing the once market leader down by more than 5 percent. Broader European shares closed higher - the German Dax settling at its sixth record close.