NEW YORK — The Dow and S&P 500 ended at record highs Friday while the Nasdaq notched an eighth straight day of gains after Greek and eurozone finance ministers reached a deal to extend heavily indebted Greece’s financial rescue by four months.
The agreement removes the immediate risk of Greece running out of money next month and possibly being forced out of the single currency area.
The Nasdaq matched an eight-session winning streak from a year ago and inched closer to its 5,132.52 March 2000 all-time intraday high, reached just before the dot-com bubble burst. The S&P 500 ended slightly higher for the week as well, its third straight week of gains.
You’re seeing a little bit better U.S. economic statistics than you’ve been seeing over the past three or four weeks. The European statistics have gotten a lot better, too.
The Greek accord will allow investors to concentrate on the fundamentals that should be driving the market, said Ben Pace, chief investment officer at HPM Partners in New York.
“You’re seeing a little bit better U.S. economic statistics than you’ve been seeing over the past three or four weeks. The European statistics have gotten a lot better, too,” Pace said. “So maybe a relief rally today, because the markets were down as there was a lot of consternation going around.”
Shares of the Global X FTSE Greece 20 exchange-traded fund jumped 10.1 percent, while U.S.-listed shares of the National Bank of Greece surged 21.7 percent to $1.96.
The Dow Jones industrial average (^DJI) rose 154.67 points, or 0.86 percent, to 18,140.44, the Standard & Poor’s 500 index (^GSPC) gained 12.85 points, or 0.61 percent, to 2,110.3 and the Nasdaq composite (^IXIC) added 31.27 points, or 0.63 percent, to 4,955.97.
For the week, the Dow was 0.7 percent, the S&P 500 was up 0.6 percent and the Nasdaq was up 1.3 percent.
Intuit (INTU) was among the Nasdaq’s biggest positives, rising 6.2 percent to $96.72 a day after reporting a smaller-than-expected quarterly loss.
Shares of Mohawk Industries (MHK) were up 6.7 percent at $184.26, the biggest percentage gainer in the S&P 500, following results.
About 6.2 billion shares changed hands on U.S. exchanges, below the 7 billion average for the month to date, according to BATS Global Markets.
Advancing issues outnumbered decliners on the NYSE 2,085 to 990, for a 2.11-to-1 ratio; on the Nasdaq, 1,449 issues rose and 1,266 fell, a 1.14-to-1 ratio favoring advancers.
The S&P 500 posted 82 new 52-week highs and two new lows; the Nasdaq composite recorded 107 new highs and 23 new lows.
What to watch Monday:
The National Association of Realtors releases existing home sales for January at 10 a.m. Eastern time.
The Federal Reserve Bank of Dallas releases its February survey of manufacturing conditions in Texas at 10:30 a.m.
Earnings Calendar
These selected companies are scheduled to release quarterly financial results:
Alliant Energy (LNT)
Dish Network (DISH)
Express Scripts (ESRX)
HSBC (HSBC)
Tenet Healthcare (THC)
After decades of accumulating enough money to retire, it can be psychologically and emotionally challenging to spend down that money and watch your nest egg get smaller each year. "They are going to feel like they spent a lifetime accumulating this pile, and the idea of spending this down is just repulsive to them," says Alicia Munnell, director of the Center for Retirement Research at Boston College and co-author of "Falling Short: The Coming Retirement Crisis and What to Do About It." "For anyone who is retiring, I would give them permission to spend their money," she says.
1. It can be difficult to spend down your savings
Saving enough to retire is not your final goal. You should also develop a plan to make that money last the rest of your life. "You need to understand how you can minimize your risk in the portfolio, but you also need a component of that strategy that gives you growth because you need to stay ahead of inflation and taxes," says Laura Mattia, a certified financial planner and wealth management principal for Baron Financial Group in Fair Lawn, New Jersey.
2. You still need investment growth
Social Security is a significant source of income for most retirees. Almost all retirees (86 percent) receive income from Social Security, and Social Security payments make up at least half of the retirement income of 65 percent of retirees and comprise 90 percent of retirement income for 36 percent of retirees. "Most seniors do not have much income other than Social Security," says Nancy Altman, co-director of the Strengthen Social Security coalition and co-author of "Social Security Works! Why Social Security Isn’t Going Broke and How Expanding It Will Help Us All." The average monthly retirement benefit was $1,282 in December 2014.
3. Many retirees rely on Social Security
High medical care bills don’t go away once you qualify for Medicare. Although Medicare covers a large amount of the medical treatments older people need, there are several popular services that it doesn’t. For example, Medicare won’t cover routine eye exams, eyeglass, dental care or hearing aids. And Medicare only covers up to 100 days in a nursing home. Retirees who require additional long-term care will need to find another way to pay for it. And while many preventive care services are covered by Medicare with no cost-sharing requirements, if something concerning is found, additional tests and procedures will be considered diagnostic, and copays and coinsurance are likely to apply. "You really need to understand what health benefits you can receive from Medicare and check how it will cover any ongoing health issues," says Christopher Rhim, a certified financial planner for Green View Advisors in Norwich, Vermont.
4. Medicare doesn't cover everything
Without a job to go to every day, you could find yourself spending an increasing amount of time alone. Some 44 percent of Americans ages 65 and older live alone, according to U.S. Census Bureau data. Unless you sign up for a volunteer position or make an effort to socialize on a regular basis, you could become bored and lonely.
5. You might spend a lot of time alone
If you outlive your spouse or divorce, you might find yourself single again in retirement. While just over half (55 percent) of Americans age 65 and older are married, the rest are widowed (28 percent), divorced (12 percent), separated (1 percent) or never married (5 percent), according to census data. Some of these single seniors begin meeting new people and dating. There are a variety of online dating services that cater to people over 50.
6. Many retirees are dating
As attractive as it sounds to move to the Sunbelt, most retirees don’t relocate for retirement. Only 5.7 percent of Americans age 65 and older moved to a new residence between 2009 and 2013, and the people who do move most often relocate to the same state and even the same county, the Census Bureau found. Only 1 percent of retirees moved to a new state, and just 0.3 percent went overseas. Relocating to a new community in retirement often means leaving behind family and a support system that can be difficult to rebuild in a new place.
7. Moving can be difficult
While the act of aging is an expected part of retirement, the loss of independence typically isn’t as welcome. There may come a time when you can’t drive, shovel your own walkway or climb on a chair to change a light bulb. You may even eventually need help with meals and bathing. Although the beginning of retirement is often full of fun and adventures, it’s also a good time to make contingency plans for later down the road when you might not be able to care for yourself.
8. You will need help from others
Retirees spend over half of their leisure time watching TV. Seniors ages 65 to 74 tune in for 3.92 hours on weekdays, and those 75 and older watch TV for an average of 4.15 hours each day, according to the 2013 American Time Use Survey by the Bureau of Labor Statistics.
9. Retirees watch a lot of TV
Compared to the overall population, retirees ages 65 to 74 spend extra time lingering over meals, working on home improvement or garden projects and shopping, the American Time Use Survey found. Retirees also spend more time reading, relaxing and volunteering than younger folks.
10. You won't need to hurry
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