US Stocks Get A Boost From Data On Jobs, Manufacturing
March 15 2012 - 12:45PM
Dow Jones News
U.S. stocks inched higher after firm readings on the jobs market
and manufacturing activity provided investors with more upbeat
signals from the U.S. economy.
The Dow Jones Industrial Average rose 22 points, or 0.2%, to
13216 in midday trade. Dow industrials are on course for a seventh
consecutive gain, the longest streak since an eight-session run
ended in February.
The Standard & Poor's 500-stock index rose 5 points, or
0.4%, to 1399 and the Nasdaq Composite gained 12 points, or 0.4%,
to 3053.
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, Cisco Systems shares fell 1.8% after
announcing plans to acquire NDS Group, a U.K.-based video software
maker, in a $4 billion deal. Bank of America rose 2.6% and J.P.
Morgan Chase rose 1.6% to lead blue chips on a percentage
basis.
A raft of U.S. economic data buoyed investor sentiment. The
number of U.S. workers filing new applications for unemployment
benefits fell by 14,000 last week, which was more than the 5,000
decline that was forecast. New claims are hovering around levels
last seen four years ago.
Meanwhile, manufacturers from upstate New York down to Delaware
are seeing better business conditions this month, according to
separate reports released Thursday by the Federal Reserve Banks of
New York and Philadelphia.
"I think the data continues to be good. Claims are back to the
lowest in nearly four years, and that's a continuation of the theme
we've seen in recent months--marginally better jobs data continuing
in the right direction," said Brian Lazorishak, portfolio manager
at independent money manager Chase Investment Counsel. "The Philly
and New York Fed reports were both good, and taken together, it's
confirmation that things are gradually getting better, particularly
in the jobs market."
The Empire State's business conditions index increased for the
fourth consecutive month to 20.21 from 19.53 in February, beating
expectations and rising to the highest reading in over a year. The
Philadelphia Fed's index of general business activity within its
area factory sector rose to 12.5 in March from 10.2 in February. It
was the highest reading since April 2011.
U.S. wholesale prices increased in February at the fastest pace
in five months. The producer price index increased a seasonally
adjusted 0.4%, but producer prices were up a more mild 0.2% without
volatile energy and food components.
European markets mostly edged lower, with the Stoxx Europe 600
falling 0.1%. London's FTSE 100 Index declined 0.3% 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% on the way to the
the highest close since July, and third consecutive gain.
Crude-oil futures fell 0.9% to $104.40 a barrel after media
reports that the U.S. and U.K. will cooperate on releasing
strategic oil reserves. Gold futures added 0.4% to $1,649.80 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 2.265%.
In other corporate news, Scholastic's fiscal third-quarter loss
narrowed as the popularity of "The Hunger Games" series aided the
children's book publisher's sales and improved margins. Scholastic
raised its full-year earnings estimate, and shares jumped 12%.
Guess slumped 11% as fiscal fourth-quarter revenue fell short of
expectations, even as earnings were in line, and the apparel and
accessories retailer provided first-quarter earnings and revenue
outlooks well below current projections.
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. Shares rose 1.4%
Video conferencing technologies company Radvision, up 4.5%,
agreed to be acquired by Avaya in a deal valued at $230
million.
Vera Bradley slid 9.4% 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 and shares rose 18%.
-By Chris Dieterich, Dow Jones Newswires; 212-416-2611;
christopher.dieterich@dowjones.com