The Dow Jones Industrial Average and Standard & Poor’s 500 index both closed up a small fraction Tuesday.
The Dow rose 27.57 points, or 0.2%, its fifth consecutive day of gains. The benchmark registered its highest closing value since Oct. 18, and is up 3.29% in January. The S&P 500 rose just 0.11%, but logged its highest closing value since Dec. 28, 2007; it’s now 5.93% off its all-time closing high from Oct. 9, 2007, 1,565.15. The Russell 2000 index was up 0.51% and closed at a record 884.6.
In after hours action, Vera Bradley (VRA) stock was up about 5% after the retailer raised its fourth-quarter and full-year earnings guidance.
In other corporate news, the Wall Street Journal reported today that Morgan Stanley (MS), which last week announced 1,600 job cuts, is going to defer bonuses for some of its higher-paid staff:
Morgan Stanley will forgo paying immediate cash bonuses for most employees making more than $350,000, a move that will hit the securities firm’s highest-paid traders and investment bankers in the wallet…
As a result of the changes, bonuses will be paid out in the form of deferred cash and stock starting in May and continuing through December 2015, people familiar with the plans said Tuesday.
I guess that means traders have at least some incentive to not be too reckless.
The Journal also reported today that US Airways (LCC) first suggested a merger with AMR (AAMRQ), parent of American Airlines, back in April. The proposal was “essentially ignored” by AMR CEO Tom Horton and the company’s creditors. AMR will report its earnings tomorrow.
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