Investors Cheer US Data; S&P 500 Tops 1400, DJIA Extends Win Streak
March 15 2012 - 5:12PM
Dow Jones News
Stocks rose, pushing the Standard & Poor's 500-stock index
above 1400 for the first time in almost four years, after another
round of solid domestic economic reports.
Stock indexes overcame a shaky start to close Thursday at
multiyear highs. The Dow Jones Industrial Average rose 58.66, or
0.4%, to 13252.76, extending gains for a seventh straight session.
It's the longest winning streak for blue chips since an
eight-session run in February 2011.
The S&P 500 rose 8.32 points, or 0.6%, to 1402.60, the first
close above 1400 since June 2008. The Nasdaq Composite closed up
15.64 points, or 0.5%, to 3056.37, its highest close in more than a
decade.
For the first time ever, Dow industrials finished above 13000,
the S&P 500 above 1400 and the Nasdaq above 3000.
Financial and industrial stocks were the big gainers among
sectors in the S&P 500. Bank of America rose 40 cents, or 4.5%,
to $9.24, and J.P. Morgan Chase gained 1.12, or 2.6%, to 44.70, to
lead the blue chips. Cisco Systems fell 29 cents, 1.4%, to 19.91,
after announcing plans to acquire NDS Group, a U.K. video software
maker, in a $4 billion deal. Apple fell for the first time in seven
sessions, down 4.02, or 0.7%, to 585.56, after briefly topping $600
for the first time ever.
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.
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.
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 0.30% to settle at $105.11 a barrel, and
gold added 1%, to settle at 1659.10 a troy ounce. The dollar lost
ground against the euro and yen. The yield on the 10-year Treasury
note rose to 2.278%.
In other corporate news, Scholastic jumped 4.16, or 13%, to
36.36, 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 3.73, or 10%, to 32.97, 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 1.30, or 2.5%, to 53.63, 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 50
cents, or 4.5%, to 11.70 after it agreed to be acquired by Avaya in
a deal valued at $230 million.
Vera Bradley slid 3.56, or 9.6%, to 33.58, 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 1.44, or 16%, to 10.34, after
reporting better-than-expected fiscal second-quarter revenue.
-By Chris Dieterich, Dow Jones Newswires; 212-416-2611;
christopher.dieterich@dowjones.com