Strong U.S. jobless claims data and better than expected
growth in consumer credit helped the stock market to record small
gains on Thursday.
The euro was also stronger on the session after the European
Central Bank left its benchmark interest rate unchanged. The Dow
Jones Industrial Average hit an intra-day all-time high for the
third consecutive trading session as the market continues to
advance amid low volatility conditions.
The Dow Jones Industrial Average closed up 33 points, or 0.23
percent, to 14,329.
The S&P 500 rose a little less than 3 points, or 0.18
percent, to 1,544.
The Nasdaq Composite climbed 10 points, or 0.30 percent, to
close at 3,232.
Initial claims fell from 347,000 for the week ending February
23 to 340,000 for the week ending March 2. This was well ahead of
consensus estimates which called for initial jobless claims to
rise to 350,000.
Continuing claims increased from 3.091 million for the week
ending February 16 to 3.094 million for the week ending February
23. This was still better than the consensus estimate which
called for an increase to 3.100 million in the period.
The U.S. trade deficit widened in January. The deficit was
$44.4 billion for the month versus $38.1 billion in December.
This was also wider than the consensus, which expected the trade
deficit to widen to $43 billion.
Looking ahead, a stronger greenback, weaker euro, and slowing
growth in Asia will likely lead to slower export growth in the
Consumer credit continued to expand in January according to
the most recent data. Consumer credit rose by $16.2 billion in
January versus an increase of $15.1 billion in December. This was
much better than the consensus which expected an increase of
$12.8 billion in the month.
Crude oil was mixed on Thursday with WTI crude adding better
than 1 percent while Brent contracts were close to unchanged. At
last check, NYMEX crude futures had climbed 1.22 percent to
$91.53 while Brent futures were unchanged at $111.06. Natural gas
jumped more than 3 percent on the day to $3.58.
Precious metals rose very marginally on the day. At last
check, COMEX gold futures were up 0.09 percent to $1,576.30 while
silver had also risen 0.09 percent to $28.82.
In the agricultural complex, most grains were higher, with
wheat climbing nearly 2 percent. Corn was last trading up around
0.40 percent. In softs, cocoa, coffee and orange juice
concentrate futures all traded up 1 percent or better. Sugar
contracts added more than 3 percent.
Treasuries took a dive on the day with the iShares Barclays
20+ Year Treasury Bond ETF (NYSE:
) trading down around 0.75 percent near the close of equities.
Falling prices drove yields higher on the session.
Although the 2-Year Note yield was flat at 0.25 percent, the
5-Year yield rose five basis points to 0.85 percent.
The 10-Year Note yield and the 30-Year Bond yield also added
five basis points apiece to 1.99 percent and 3.20 percent,
The U.S. dollar recorded a moderate loss on the day. At last
check, the PowerShares DB US Dollar Index Bullish ETF (NYSE:
), which tracks the performance of the greenback versus a basket
of foreign currencies, was down 0.44 percent to $22.39.
The closely watched EUR/USD was last trading down 0.30 percent
to $1.3010. Other movers included the USD/JPY, which rose 0.26
percent, and the GBP/USD which fell a little less than 0.50
Volatility and Volume
The VIX continued to fall on Thursday along with market
expectations for volatility. The VIX closed down 3.47 percent at
Volume was way below current trends on the session with under
63 million SPDR S&P 500 ETF (NYSE:
) shares trading hands compared to a 3-month daily average of 134
) lost more than 6 percent after the company released its fiscal
fourth-quarter earnings results and issued disappointing
Navistar International (NYSE:
) was trading up better than 27 percent near the close after
releasing bullish Q1 results.
) soared more than 18 percent after the company's fiscal
first-quarter financial results.
Shares of Gap (NYSE:
) jumped nearly 4 percent nearing the close after bullish monthly
sales data was leaked early in the session.
Vail Resorts (NYSE:
) climbed around 7 percent after the company released positive Q2
results and upped its dividend.
Semtech Corporation (NASDAQ:
) surged around 8 percent after its fiscal fourth-quarter and
full-year financial results.
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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