US Stocks Higher After Solid Domestic Economic Data
March 15 2012 - 2:27PM
Dow Jones News
Stocks rose in the U.S. on Thursday as the Standard & Poor's
500-stock index topped 1400 for the first time in nearly four years
after firm readings on the country's jobs market and manufacturing
activity.
The Dow Jones Industrial Average rose 36 points, or 0.3%, to
13220, in afternoon trading. The Dow industrials are on course for
a seventh consecutive gain, the longest streak since an
eight-session run ended in February.
The S&P 500 rose six points, or 0.5%, to 1402, rising above
1400 for the first time since June 2008. The Nasdaq Composite
gained 12 points, or 0.4%, to 3052.
Financial and industrial stocks advanced most on a percentage
basis. Among blue chips, Cisco Systems fell 1.4% after announcing
plans to acquire NDS Group, a U.K. video software maker, in a $4
billion deal. Bank of America rose 4% and J.P. Morgan Chase
advanced 2.8% to lead blue chips. Apple edged lower by 0.4% after
briefly topping $600 for the first time.
In economic data, the number of U.S. workers filing new
applications for unemployment benefits fell more than expected last
week. 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 Federal Reserve
banks.
"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
(Philadelphia) 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."
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 0.2% without energy and
food components.
European markets reversed early losses and pushed higher, with
the Stoxx Europe 600 up 0.3%. The U.K.'s FTSE 100 Index declined
0.1% after Fitch Ratings cuts its outlook on the U.K. to negative,
saying the country's financial flexibility was "very limited."
Asian bourses mostly were lower. China's Shanghai Composite fell
0.7%, but Japan's Nikkei Stock Average rose 0.7% to its highest
close since July.
Crude-oil prices were flat at $105.43 a barrel, and gold added
1%, to $1,658.90 a troy ounce. The dollar lost ground against the
euro and yen. The yield on the 10-year Treasury note fell to
2.279%.
In other corporate news, Scholastic jumped 12% after it reported
its 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 also raised its full-year earnings
estimate.
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 projections.
Capital One Financial rose 2% after it said it plans to offer up
to $1.25 billion of its common stock in a public sale to help fund
its previously announced acquisition of HSBC's U.S. credit-card
business.
Video conferencing technologies company Radvision advanced 4.4%
after it agreed to be acquired by Avaya in a deal valued at $230
million.
Vera Bradley slid 9% after reporting fiscal fourth-quarter
earnings and revenue that topped estimates, but provided a
first-quarter earnings outlook that was below projections.
Winnebago Industries climbed 14% after reporting
better-than-expected fiscal second-quarter revenue.
-By Chris Dieterich and Matt Jarzemsky, Dow Jones Newswires;
212-416-2611; christopher.dieterich@dowjones.com