By Ellie Ismailidou and Carla Mozee, MarketWatch
Stocks on track for monthly losses, but positive
year-to-date
U.S. stocks held on to modest gains Thursday morning, struggling
to extend for a third session the rebound from a sharp two-day
selloff triggered last week by the U.K.'s vote to leave the
European Union.
The S&P 500 was up 7 points, or 0.3%, at 2,073, led by a
1.5% rise in consumer-staples stocks. Materials and health-care
stocks were the only two sectors in negative territory, both down
less than 0.1%.
The Dow Jones Industrial Average added 66 points, or 0.4%, to
17,761, led by a 1.3% jump in General Electric Co.(GE) but weighed
by a 1.8% fall in VISA Inc. (V).
The Nasdaq Composite was up 13 points, or 0.3% at 4,791.
The main indexes looked set to book monthly losses but were
modestly higher over the quarter and on Wednesday turned positive
on a year-to-date basis.
A pullback in crude-oil prices
(http://www.marketwatch.com/story/oil-prices-ease-after-biggest-gain-in-2-months-2016-06-30),
which posted Wednesday their biggest gain since early April,
weighed on sentiment. But a rebound in the British pound for the
third straight session, as well as a reading of initial U.S.
jobless claims
(http://www.marketwatch.com/story/jobless-claims-climb-10000-to-268000-2016-06-30)that
showed that the pace of layoffs nationwide remained extremely low,
supported risk appetite.
Investors awaited a speech by a key Federal Reserve policy
maker, St. Louis Fed President James Bullard, while still assessing
whether markets have calmed down after the U.K.'s Brexit vote
prompted a rout followed by a rebound.
"There's a bit of complacency out there," said Jeff Carbone,
managing director at wealth manager Cornerstone Financial
Partners.
Even as the U.K.'s FTSE 100 has erased its post-Brexit slide
(http://www.marketwatch.com/story/ftse-100-eases-back-after-returning-to-pre-brexit-level-2016-06-30)
and U.S. benchmarks logged in the last two sessions their largest
two-day jump since February, this doesn't change the fact that the
stock market is trading at historically high valuations amid
continuing political uncertainty, Carbone said.
"Get ready for continued volatility," he added.
While EU leaders are urging the U.K. to move ahead with the
first step in triggering Brexit, the country is in political
turmoil after Prime Minister David Cameron said he would resign and
leave that move to his successor.
Brexit backer and former London Mayor Boris Johnson said
Thursday he won't participate in the race to succeed Cameron,
(http://www.marketwatch.com/story/former-london-mayor-boris-johnson-wont-seek-to-replace-british-prime-minister-2016-06-30)
confounding widely held expectations.
"It appears that markets have developed into more of a
consolidation and there will be fears that this could simply have
been an unwinding move that provides another chance to sell," said
Richard Perry, market analyst at Hantec Markets, in a note.
From a technical-analysis perspective, "the longer-term trend
[for the S&P 500] remains up since February," said to Frank
Cappelleri, technical analyst at Instinet, in emailed comments.
But the index "is still searching for direction in the
short-term," Cappelleri said. "While the [S&P] has had it
chances to break out (and down) multiple times over the last three
months, it has yet to thoroughly leverage any apparent support [or]
resistance penetrations."
Economic docket: Bullard is set to speak at the Society of
Business Economists' annual dinner in London at 3:20 p.m. Eastern
Time. Bullard, a voting member this year on the Federal Reserve's
rate-setting board, said earlier this month the Fed could hold
monetary policy steady
(http://www.marketwatch.com/story/fed-can-sit-on-its-hands-as-current-economic-trends-likely-to-persist-bullard-says-2016-06-17)
considering the trend of tepid 2% growth, along with a low
unemployment rate and subdued inflation.
Meanwhile, a measure of Chicago-area economic activity
(http://www.marketwatch.com/story/chicago-pmi-surges-in-june-2016-06-30)surged
in June on a big advance in the number of purchasing managers,
indicating improving production and new orders.
Stocks to watch:Yahoo Inc.(YHOO) inched higher by 0.5% as
shareholders held their annual meeting.
Shares of Lions Gate Entertainment Corp. (LGF) gained 2.4%
following an agreement to be purchased by Starz(STRZA)for $4.4
billion in cash and stock
(http://www.marketwatch.com/story/lions-gate-starz-shares-soar-after-merger-deal-announced-2016-06-30).
Starz's shares popped up 10.8%.
Wal-Mart Stores Inc.(WMT) gained 0.4% after announcing Thursday
it's launching Wal-Mart Pay in 11 more states
(http://www.marketwatch.com/story/wal-mart-launches-walmart-pay-in-more-than-500-stores-2016-06-30),
making its mobile pay service available in more than 500 new
stores.
Darden Restaurants Inc. (DRI), whose chains include Olive Garden
and The Capital Grille, tumbled 4.6% after the company posted a
rise in quarterly profit while sales missed expectations
(http://www.marketwatch.com/story/darden-profit-rises-while-sales-miss-dividend-increased-12-2016-06-30).
Darden did raise its dividend by 12%.
ConAgra Foods Inc.(CAG) shares reversed premarket losses to
trade up 0.1% after the company reported fiscal fourth-quarter
revenue that missed expectations.
(http://www.marketwatch.com/story/conagra-foods-shares-slide-after-revenue-miss-2016-06-30)
Liquor and beer maker Constellation Brands Inc. (STZ) gained
2.6% after the company said its earnings and sales rose above
expectations
(http://www.marketwatch.com/story/constellation-brands-earnings-sales-rise-above-expectations-2016-06-30).
McCormick & Co. Inc.(MKC) gained 2.5% after the company's
profits rose
(http://www.marketwatch.com/story/mccormick-profit-rises-beats-expectations-2016-06-30)as
acquisitions and cost-cutting helped boost the spicemaker's
sales.
Pier 1 Imports Inc.(PIR) reported a quarterly loss and a decline
in sales
(http://www.marketwatch.com/story/pier-1-imports-joins-in-weak-retail-results-2016-06-29)late
Wednesday, sending shares down 9.5%.
(http://www.marketwatch.com/story/oil-gains-more-ground-after-eia-reports-41-million-barrel-fall-in-us-crude-supplies-2016-06-29)Tractor
Supply Co.(TSCO) shares fell 3.4% after the company's
second-quarter forecast fell short of expectations
(http://www.marketwatch.com/story/tractor-supply-co-warning-sends-stock-sliding-2016-06-29).
The farm-equipment supplier also lowered its annual forecast.
Progress Software Corp.(PRGS) shares gained 6.2% following the
business software maker's report of better-than-expected
second-quarter earnings
(http://www.marketwatch.com/story/progress-software-stock-gains-on-sales-boost-2016-06-29).
Other markets: Oil prices
(http://www.marketwatch.com/story/oil-prices-ease-after-biggest-gain-in-2-months-2016-06-30)
dropped 2%, trading below $49 a barrel. European stocks slipped
after a strong rally on Wednesday.
Asian stocks
(http://www.marketwatch.com/story/asian-shares-edge-higher-as-post-brexit-vote-relief-sinks-in-2016-06-30)
ended mostly higher, with Japan's Nikkei Average edging up 0.1% and
Hong Kong's Hang Seng Index gaining 1.8%.
Gold futures were off 0.4% at $1,319 an ounce. The ICE U.S.
Dollar Index was up less than 0.1%.
(END) Dow Jones Newswires
June 30, 2016 11:03 ET (15:03 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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