By Kate Gibson
U.S. stocks tentatively stepped in and out of positive terrain
Thursday afternoon, as investors hesitated to take a decisive
stance before the government releases its first take on U.S.
second-quarter economic growth.
"There is a shuffling of positions prior to tomorrow's [gross
domestic product] number, with investors getting positions in line
and taking some risk off the table," Dan Cook, senior market
analyst at IG Markets, said of the session's seesawing trade.
After snapping a four-day win streak Wednesday, the Dow Jones
Industrial Average (DJI) traded in a near 200-point range on either
side of neutral, lately up 8.78 points to 10,506.66, with
two-thirds of its 30 components higher.
Reversing course again, shares of Dow component Exxon Mobil
Corp. (XOM) edged up after the oil giant reported a near-doubling
of second-quarter income. .
"The markets are becoming more cautious again as we get to the
upper trading range on a great earnings season," said Bruce McCain,
chief investment strategist at Key Private Bank.
U.S. economic data remain soft, and while the morning's
better-than-expected drop in weekly jobless claims was positive,
the labor market remains "sluggish," said Peter Boockvar, equity
strategist at Miller Tabak.
"We're still adding jobs, but not to the point that we should be
at this point in the recovery," Boockvar said.
The market also fretted ahead of the government's reading on
quarterly economic growth, due Friday morning. Analysts expect U.S.
GDP slowed in the second quarter to an annual rate of 2.5% from
2.7% in the first.
The S&P 500 Index (SPX) stalled at 1,106.41, up less than
one-quarter of a point, with financials up the most and utilities
weighing.
Among the index's more noteworthy movers, shares of Citrix
Systems Inc. (CTXS) surged 21% after the provider of software and
equipment for computer business systems late Wednesday projected a
stronger-than-expected quarter and year. .
In the financial sector, Ameriprise Financial Inc. (AMP) rallied
almost 14%. Late Wednesday, the investment manager reported a
near-tripling of profit in the second quarter.
On the downside, Akamai Technologies Inc. (AKAM) shares fell 12%
after the provider of services to online entertainment companies
offered a disappointing outlook. Akamai shares had climbed more
than 30% in the past three months on the belief that it would
profit from demand for online media.
The Nasdaq Composite Index (RIXF) shed 2.28 points to
2,262.28.
Advancers edged past decliners by a 3-to-2 ratio on the New York
Stock Exchange, where volume topped 833 million shares at 3:30 p.m.
Eastern.
Federal Reserve Bank of St. Louis President James Bullard warned
against a Japan-style deflationary trap stemming from the central
bank's extended period of low interest rates in a paper released
Thursday. .
Ahead of Wall Street's start, stock futures added slightly to
their earnings-inspired rise after the government said initial
claims for unemployment benefits fell modestly, with the count
slightly better than analysts had projected. .