Positive earnings and economic reports keep indices steady
The U.S. stock market finished moderately higher on Thursday, 24 April 2014. Positive earnings and stronger-than-expected data outweighed worries over military escalation near Ukrainian border. Tech shares (and the Nasdaq) received significant support from the shares of Apple which surged after the top-weighted tech company handily beat earnings expectations.
The Dow Jones Industrial Average closed absolutely unchanged at 16,501.65. The Nasdaq Composite gained 21.37 points, or 0.5%, to 4,148.34. The S&P 500 ended the day 3.22 points, or 0.2%, higher at 1,878.61.
Apple shares surged 8.2% after the top-weighted tech company handily beat earnings expectations. In addition, Apple increased its share buyback to $90 billion and announced a 7:1 stock split, which will go into effect on June 2.
Ahead of the open, economic bellwether Caterpillar topped forecasts reporting a 4.8% increase in profits during the first quarter. Reporting after the closing bell, Microsoft shares rose 2.2%, after its first-quarter results topped forecasts. 3M slipped 1% after missing expectations on revenue.
Facebook reversed post-earnings gains and closed 0.8% lower. The social network company posted first-quarter earnings that nearly tripled and revenue that jumped 72%, with both numbers blowing out forecasts.
In overnight news, European Central Bank President Mario Draghi again hinted on Thursday that the ECB could ease monetary policy to ward off deflationary price pressures. The annual inflation rate for the EU is 0.5%, whereas the ECB is aiming for an annual inflation rate of 2.0%. In a sign the European Union is moving beyond its sovereign debt crisis, a Spain government bonds auction of several maturities fetched record low yields Thursdayranging from just over 1% to just over 3%. Also, a report on Thursday said the EU budget deficit fell below its target level for the first time since the EU debt crisis began in 2008.
U.S. economic data released Thursday included the weekly jobless claims report, the Kansas City Fed manufacturing survey, and durable goods orders.
The initial claims level increased to 329,000 for the week ending April 19 from an upwardly revised 305,000 (from 304,000) for the week ending April 12. The consensus expected the claims level to increase to 312,000.
Also, durable goods orders increased 2.6% in March after increasing a downwardly revised 2.1% (from 2.2%) in February. The consensus expected durable goods orders to increase 2.0%. Transportation orders were still important, up 4.0% after increasing 6.7% in February, but were not the sole provider of growth. Durable goods orders excluding transportation increased 2.0% in March, up from a 0.1% increase in February. That was also well above the consensus expectation of a 0.5% gain.
Bullion metals ended higher on Monday, 24 April 2014 at Comex. Gold futures rose for a second-straight session on Thursday to settle at their highest level in a week, as intensifying tensions between Ukraine and Russia buoyed the metal's safe-haven appeal. Developments in Ukraine offset a stronger-than-expected reading on durable-goods orders that bolstered expectations of a pick-up in economic growth and a continued reduction in the Federal Reserve's monetary stimulus.
Gold for June delivery tacked on $6, or 0.5%, to settle at $1,290.60 an ounce on the Comex division of the New York Mercantile Exchange. May silver climbed 25 cents, or 1.3%, to end at $19.69 an ounce.
Crude oil futures climbed on Thursday, 24 April 2014 at Nymex with prices settling near $102 a barrel as support from continued tensions in Ukraine outweighed pressure from hefty U.S. crude supplies.
Crude oil for June delivery rose 50 cents, or 0.5%, to settle at $101.94 a barrel on the New York Mercantile Exchange.
Participation remained relatively light as less than 650 million shares changed hands at the NYSE.
Tomorrow, the final reading of the Michigan Consumer Sentiment survey for April (consensus 82.6) will be released at 9:55 ET.
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