Investors Cheer US Data; S&P 500 Tops 1400, DJIA Extends Win Streak
March 15 2012 - 4:54PM
Dow Jones News
Stocks rose, pushing the Standard & Poor's 500-stock index
above 1400 for the first time in almost four years, as investors
cheered another round of solid domestic economic reports.
Benchmark stock indexes overcame a shaky start to close Thursday
at fresh multiyear highs. The Dow Jones Industrial Average rose
58.66, or 0.44%, to 13252.76, extending gains for a seventh
straight session. Its the longest winning streak for blue chips
since an eight-session run in February 2011.
The Standard & Poor's 500-stock index rose 8.32 points, or
0.6%, to 1402.60, the first close above the round number since June
5, 2008. The Nasdaq closed up 15.64, or 0.5%, to 3056.37, its
highest close in more than a decade.
Financial and industrial stocks were the big gainers among
sectors in the S&P 500. Bank of America rose 4.5% and J.P.
Morgan Chase gained 2.6% to lead the 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. Apple edged lower by 0.7%
after briefly topping $600 for the first time ever early in the
session.
Thursday's gains were propped up by reports on the U.S. economy.
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.
In other corporate news, Scholastic jumped 13% 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 2.5% 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 4.5%
after it agreed to be acquired by Avaya in a deal valued at $230
million.
Vera Bradley slid 9.6% 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 16% after reporting
better-than-expected fiscal second-quarter revenue.
-By Chris Dieterich, Dow Jones Newswires; 212-416-2611;
christopher.dieterich@dowjones.com