Closing Update: Stocks Hold Modest Gains on Market-Friendly Housing, Manufacturing Data

By
A A A

Stocks held onto very modest gains throughout the day when market-friendly data and upbeat retailer earnings renewed confidence in the economy. But attempts to challenge recent record highs were undermined by a greater-than-expected gain in initial jobless claims and investors' reluctance to set aggressive positions before the long holiday weekend.

The deluge of data this morning was mostly bullish, but there were some pockets of weakness: the Chicago Fed reported a significant deterioration in its national activity index to -32 from March's +34, and initial jobless claims jumped 28,000 to 326,000 versus the consensus for a smaller 13,000 increase.

But the bulls were encouraged by a 1.3% increase in existing home sales, slightly below estimates at a seasonally-adjusted annual pace of 4.65 million, but still evidence of resilience in the housing market.

In addition, the Markit PMI index for May improved to 56.2 in May from 55.4, beating estimates, while leading indicators were up 0.4% in April from an upwardly revised +1.0% the month prior.

Finally, the Kansas City Fed manufacturing index rose to 10.0 from 7.0 in April.

In corporate news, Best Buy ( BBY ) reported better-than-expected earnings, Lorillard ( LOR ) is in merger talks with Reynolds American ( RAI ), and General Electric ( GE ) has extended its $17 billion purchase of France's Alstom to June 23.

Here's where the markets stand at the close:

US MARKETS

Dow Jones Industrial Index was up 10 (+0.06%) at 16,543

S&P 500 was up 4 (+0.2%) at 1,892

Nasdaq Composite Index was up 22 (+0.6%) at 4,154

GLOBAL SENTIMENT

FTSE 100 was down 0.01%

Nikkei 225 was up 2.11%

Hang Seng Index was up 0.51%

Shanghai China Composite Index was down 0.18%

UPSIDE MOVERS

(+) NTLS Extends strategic network deal with Sprint ( S ) through 2022

(+) ROYL Identifies large drillable target on Alaska 3D seismic

(+) ATOS Board approves a poison-pill provision

(+) BRTX Signed a two-year research agreement with Pfizer (PFE) to jointly study

brown fat and its potential therapeutic uses

DOWNSIDE MOVERS

(-) WSTL Reported mixed financial results for Q4,

(-) ESI Reported a drop in new student and current student enrolment

(-) PVCT Seeking Alpha claims oncology drug failed breakthrough therapy designation



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Copyright (C) 2014 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.


This article appears in: Investing , Commodities

Referenced Stocks: BBY , LOR , RAI , GE , S

MT Newswires

MT Newswires

More from MT Newswires:

Related Videos

Stocks

Referenced

Most Active by Volume

64,159,633
  • $100.86 ▼ 0.76%
63,552,623
  • $16.71 ▼ 0.18%
60,140,251
  • $42.71 ▲ 0.38%
52,385,870
  • $17.51 ▲ 5.86%
50,329,585
  • $13.75 ▲ 29.84%
43,337,551
  • $16.16 ▼ 1.40%
40,126,911
  • $3.605 ▲ 0.56%
39,836,742
  • $3.81 ▼ 2.56%
As of 9/16/2014, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com