By Anora Mahmudova and Sara Sjolin, MarketWatch
S&P 500 sets intraday all-time high, closes below previous
record
U.S. stocks posted records on Thursday on the back of relatively
modest gains, which saw the Nasdaq Composite close at its highest
level ever as the S&P 500 flirted with a record close.
The record-setting Nasdaq Composite (RIXF) end up 20.89 points,
or 0.4%, at 5,056, surpassing a 15-year closing high set March 10,
2000 during the dot-com boom.
The S&P 500 (SPX) ended 4.97 points, or 0.2%, higher at
2,112.93, retreating from an intraday record of 2,120.52 set on
Thursday, while the Dow Jones Industrial Average (DJI) added a
relatively mundane 20.42 points, or 0.1%, to close higher at
18,058.69.
The afternoon gains for stocks came as investors weighed a
cascade of mixed earnings reports and weaker-than-forecast economic
reports.
Randy Frederick, Managing Director of Trading and Derivatives at
the Schwab Center for Financial Research, said today's gains are
due to a combination of bullish factors: higher oil prices,
weakening dollar and very low volatility. "There is also a seasonal
bias, as second half of April tends to be bullish," he noted.
Indeed, energy, utilities and telecommunications stocks were
among the biggest gainers in the S&P 500.
As for the softness that has been the case with some earnings
reports, Kim Caughey Forrest, senior analyst at Fort Pitt Capital,
said expectations going into the earnings season may not have been
low enough.
"Some companies are beating expectations by a narrow margin, but
even the ones who are missing estimates are not punished as much
because of low-interest-rate environment," Forrest said suggesting
that companies' continued ability to service their debt is covering
up their poor performance.
Data: Sales of new single-family homes tumbled 11.4% to an
annual rate of 481,000 in March, pulling back from a seven-year
high reached a month earlier and hitting the slowest pace since
November, according to government data released Thursday. However,
economists caution that the large margin of error make single-month
readings less reliable.
The number of people who applied for regular state
unemployment-insurance benefits ticked up 1,000 to 295,000 in the
week that ended April 18, signaling a low level of layoffs,
according to government data released Thursday.
Markit's preliminary report on the manufacturing purchasing
managers index for April fell to 54.2 in April from 55.7 in March.
Flash PMIs out of Europe released earlier on Thursday showed growth
weakened at the start of the second quarter
(http://www.marketwatch.com/story/eurozone-economy-slows-in-april-pmis-show-2015-04-23).
Earnings: On an exceptionally busy day for earnings, shares of
eBay Inc. (EBAY) jumped 3.8% after earnings showed its PayPal unit
brought more revenue that its core marketplace division.
General Motors(GM.XX) earnings disappointed, hurt by stronger
currency and weaker overseas performance. Shares fell 3.3%, making
it the top decliner on the S&P 500.
Caterpillar Inc.(CAT) posted much better-than-expected earnings
and lifted its full-year outlook. Shares initially rose as much 2%,
but closed nearly flat.
Dunkin' Brands Group Inc.(DNKN)reported first-quarter earnings
above analyst forecasts and boosted its 2015 outlook
(http://www.marketwatch.com/story/dunkin-brands-boosts-2015-outlook-2015-04-23),
sending the shares up 7.9%.
Tech giants fill out the results docket after the market closes.
Google Inc.(GOOGL) is forecast to post first-quarter earnings
(http://www.marketwatch.com/story/what-to-watch-for-in-googles-earnings-2015-04-20)
of $6.61 a share, while Microsoft Corp. (MSFT) is expected to
report earnings
(http://www.marketwatch.com/story/what-to-watch-for-in-microsofts-earnings-2015-04-21)
of 51 cents a share in the first quarter.
Amazon.com Inc.(AMZN) is likely to post a loss
(http://www.marketwatch.com/story/what-to-watch-for-in-amazons-earnings-2015-04-20)
of 16 cents a share in the first quarter.
AT&T Inc. (T) rose 2.7% on a slightly better-than-expected
earnings report issued on Wednesday
(http://www.marketwatch.com/story/att-adds-441000-core-wireless-subscribers-2015-04-22-164851122).
Read more about Thursday's jumpiest stocks in the Movers &
Shakers column
(http://www.marketwatch.com/story/gm-google-microsoft-amazon-starbucks-earnings-in-focus-2015-04-23)
Other markets:European stocks traded mostly lower
(http://www.marketwatch.com/storyno-meta-for-guid) after the
disappointing PMIs. Investors are also closely monitoring news
about Greece's reform talks ahead of a key meeting of eurozone
finance ministers on Friday. Greek Prime Minister Alexis Tsipras is
due to meet German Chancellor Angela Merkel in Brussels on
Thursday.
Asian markets closed mixed
(http://www.marketwatch.com/story/hong-kong-stocks-slip-after-soft-china-data-2015-04-23),
while metals traded higher. Oil prices
(http://www.marketwatch.com/storyno-meta-for-guid)(CLM5) rose to
settle at their highest levels of the year, up 2.8% at $57.74. The
ICE dollar index
(http://www.marketwatch.com/storyno-meta-for-guid)(DXY) inched
lower.
Subscribe to WSJ: http://online.wsj.com?mod=djnwires