S&P 500 Tops 1400; Investors Cheer More Solid US Economic Data
March 15 2012 - 3:47PM
Dow Jones News
Stocks rose, as the S&P 500 topped 1400 for the first time
in nearly four years, after firm readings on the jobs market and
manufacturing activity.
The Dow Jones Industrial Average rose 36 points, or 0.3%, to
13220, with less than an hour before Thursday's closing bell. The
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 six points, or
0.5%, to 1402, and the Nasdaq Composite gained 12 points, or 0.4%,
to 3052.
Financial and industrial stocks were the big gainers among
sectors in the S&P 500. Bank of America rose 3.9% and J.P.
Morgan Chase gained 2.5% to lead the blue chips. Among blue chips,
Cisco Systems fell 1.3% after announcing plans to acquire NDS
Group, a U.K. video software maker, in a $4 billion deal. Apple
edged 0.3% lower 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 at about 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.
"You had another round of good economic data here in the U.S.,
[and] you're sort of in a situation where the economy is in a
self-sustaining recovery," said John Canally, economist strategist
at LPL Financial.
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% to end with its highest close since
July. The U.K.'s FTSE 100 Index, however, declined 0.1% after Fitch
Ratings cuts its outlook on the U.K. to negative.
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 fell 0.1% to $105.43 a barrel, and gold added
1%, to $1659.10 a troy ounce. The dollar lost ground against the
euro and yen. The yield on the 10-year Treasury note rose to
2.290%.
In other corporate news, Scholastic jumped 14% 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 10% 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 3.4% 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 10% 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 15% after reporting
better-than-expected fiscal second-quarter revenue.
-By Chris Dieterich, Dow Jones Newswires; 212-416-2611;
christopher.dieterich@dowjones.com