The bulls ran wild on Wall Street this year, with double digit gains for stocks and red hot IPOs. NY1’s Annika Pergament takes a look at the year on Wall Street.
As investors prepare to close the books of 2013, the biggest story on Wall Street were stocks themselves, with major averages breaking dozens of record highs over the last 12 months.
The Dow is expected to rise more than 20 percent for the year, while the Nasdaq and S&P 500 will be up roughly 30 and 25 percent respectively.
That’s the best year for the S&P 500, the broadest measure of stocks, since 2007.
So what's sparked such high returns?
One trader on Wall Street points to corporate America turning in strong earnings reports.
“Most importantly this year, we've had earnings reports that have shown that individual companies have enough power to stand on their own,” said Jonathan Corpina of Meridian Equity Partners.
Some of the best performers for the Dow were Disney, Visa and 3M, all rising more than 30 percent in 2013.
And Nike, a new addition to the index, is on track to gain 50 percent this year.
Another standout was Twitter's splashy IPO. The social media giant lived up to the hype, and the stock is up more than 20 percent since its debut.
“The IPO of Twitter that came in 2013, clearly we've been thinking about this and talking about this in 2012, finally came to fruition, very important to the tech industry,” said Corpina.
But the question everyone is asking, from traders at the stock exchange, to people adding to their 401(k)s, how long will the bull run last?
One trader sees stocks already wavering.
“December on a seasonal basis is generally a positive month, we general rally till the end of the year in the equity markets. I think what we’ll see this year is that vacillation that back and forth this in the equities market,” said Keith Bliss of Cuttone & Co.
While some on Wall Street are still in a wait and see mode, especially now that the Federal Reserve will begin scaling back its $85 billion monthly bond purchases, which has been credited as the driving force of the stock surge.
“Its going to be interesting to see in 2014, when tapering does occur, how the our economy will be able to stand on its own and how the markets will react to that,” said Corpina.