US Stocks Higher; Dow Pursues Seventh Straight Gain
March 15 2012 - 11:18AM
Dow Jones News
U.S. stocks rose after firm readings on the labor market and
manufacturing activity, as blue chips flirted with a seventh
consecutive gain.
The Dow Jones Industrial Average rose 13 points, or 0.1%, to
13208 in morning trade. Dow industrials climbed 3.4% over the last
six sessions, the longest such run since an eight-session streak
ended in February.
The Standard & Poor's 500-stock index rose 4 points, or
0.3%, to 1398 and the Nasdaq Composite gained 10 points, or 0.3%,
to 3051.
Financial and industrial stocks were Thursday's biggest gainers.
Technology stocks weren't far behind, as Apple briefly topped $600
for the first time. Utility stocks and consumer staples lagged.
Apple rose 0.3% after a Dutch court said Samsung Electronics
can't pursue injunctions for patent infringement as long as Apple
is willing to negotiate license agreements. Among blue chips, Bank
of America rose 2.5% and Intel rose 1.1%.
A raft of U.S. economic data offered more confirmation that the
U.S. economic recovery is gaining steam. The number of U.S. workers
filing new applications for unemployment benefits fell more than
expected last week. Initial jobless claims tumbled by 14,000 to a
seasonally adjusted 351,000 last week. Economists surveyed by Dow
Jones Newswires had forecast that claims would fall by 5,000.
"Those unemployment numbers--they're not great, but they're good
enough to keep the improving trend story and the economy going,"
said Channing Smith, managing director at Capital Advisors.
New York manufacturing activity accelerated in March. The Empire
State's business conditions index increased for the fourth
consecutive month to 20.21 from 19.53 in February, the highest in
well over a year. Economists had expected the index to drop to
17.9. A separate report from the Philadelphia Federal Reserve Bank
showed an index on mid-Atlantic factory activity rose to 12.5 in
March from 10.2 in February, better than expectations for a reading
of 10.5.
U.S. wholesale prices increased in February at the fastest pace
in five months, driven by rising gasoline costs. The producer price
index increased a seasonally adjusted 0.4%, slightly less the
expectations for a 0.5% rise.
European markets mostly edged lower, with the Stoxx Europe 600
falling 0.2%. London's FTSE 100 Index declined 0.2% after Fitch
Ratings cuts its outlook on the U.K. to negative, saying the
country's financial flexibility was "very limited."
Asian bourses were mostly lower. China's Shanghai Composite fell
0.7%, but Japan's Nikkei Stock Average rose 0.7% to post its third
consecutive gain.
Crude futures gained 0.2% to $105.68 a barrel, while gold
futures added 0.3% to $1,648.40 a troy ounce. The U.S. dollar lost
ground against both the euro and the yen. The yield on 10-year U.S.
Treasury bonds fell to 2.269%.
In deal news, Cisco Systems plans to acquire NDS Group, a
U.K.-based video software maker, in a $4 billion deal. The deal
reflects Cisco's increased strategic focus on video. Cisco fell
1.1%.
In other corporate news, Guess reported fiscal fourth-quarter
earnings that were in line with expectations, but revenue fell
short, and the company provided first-quarter earnings and revenue
outlooks well below current projections. Shares of the apparel and
accessories retailer slumped 12%.
Capital One Financial said it plans to offer up to $1.25 billion
worth of its common stock in a public sale to help fund its
previously announced acquisition of HSBC's U.S. credit card
business. Capital One rose 0.5%.
Radvision agreed to be acquired by Avaya in a deal valued at
$230 million. Shares of the video conferencing technologies company
tacked on 4.5%.
Vera Bradley slid 9.7% after reporting fiscal fourth-quarter
earnings and revenue that topped estimates, but provided a
first-quarter earnings outlook that was below current
projections.
Winnebago Industries reported better-than-expected fiscal
second-quarter revenue, but also surprise loss for the quarter
because of increased discounts and aggressive pricing strategies.
Shares rose 7.4%.
--By Chris Dieterich, Dow Jones Newswires; 212-416-2611;
christopher.dieterich@dowjones.com