Indices buoyed by corporate-earnings reports and jobless claims data
US stocks ended higher on Thursday, 25 April 2013. Stocks ended up on Thursday, buoyed by corporate-earnings reports and data showing a sharp drop in weekly jobless claims. Indices rose as jobless claims fell and earnings topped forecasts, while the pound strengthened against the dollar after data showed the U.K. economy avoided a triple-dip recession. Gold rallied for a second day. The dollar weakened.
For the day, the Dow ended higher by 24.5 points (0.2%) at 14,700.8. Nasdaq ended higher by 20.33 points (0.62%) at 3,289.98. S&P 500 ended higher by 6.37 points (0.4%) at 1,585.16.
. Nine out of 10 S&P 500 sectors were in positive territory with materials and telecoms leading the way and energy registering a slight loss on the day. 11 of thirty components ended in negative territory.
Latest report showed that the U.K. economy expanded 0.3% in the first quarter, avoiding a triple-dip recession and beating estimates of a 0.1% improvement. In the currency market, the dollar index, which weighs the strength of the dollar against a basket of six other currencies, fell by 0.1% on Thursday.
Today's economic news at Wall Street was limited to weekly claims data. The initial claims level fell to 339,000 for the week ending April 20 from an upwardly revised 355,000 (from 352,000) for the week ending April 13. The consensus expected the initial claims level to drop to 351,000.
After several weeks of volatility following seasonal adjustment problems associated with the Easter holiday period, the initial claims level has again returned to its previous trend. The Department of Labor announced that the period of large swings in the weekly claims level is ending.
. 3M was the top decliner in the Dow. Its shares dropped 2.4% after the industrial conglomerate lowered its full-year earnings estimate. Exxon Mobil also weighed on the Dow, with its shares down 1.1% after the oil major reported that its first-quarter earnings rose 0.5%, but revenue fell short of Wall Street estimates.
. Verizon was one of the best performers on the index with a 2.2% gain. Recent reports said that the telecom major plans to bid $100 billion in cash and stock to buy out Verizon Wireless, which it jointly owns with Vodafone Group. American Express shares were also up about 2%.
. Technology stocks showed intraday strength, but the sector sold off into the close as cautious earnings and revenue guidance from Qualcomm weighed. Microsoft shares rose 1.3% following a report the company was selling $500 million in bonds.
Among other major stocks under focus, shares of Zynga dropped 6.5% after the social-games company swung to a profit but offered a weak forecast. Dow Chemical shares closed up 5.6% after the company posted a first-quarter profit rise.
Crude-oil prices ended substantially higher on Thursday, 25 April 2013 at Nymex. Prices ended higher following a lower dollar and better than expected growth figures in UK economy. Light and sweet crude for May ended higher by $2.21 (2.4%) at $93.64 a barrel on the New York Mercantile Exchange on Thursday. Prices shed 3.6% last week.
Bullion metal prices ended higher on Thursday, 25 April 2013. Prices of gold and silver rose as traders and investors continued to step in to buy the recent big dip in prices. Prices rose following physical demand for the precious metal, prospects for easier global monetary policies and a weaker U.S. dollar. Prices witnessed big one-day gains.
Gold for June delivery ended higher by $38.3 (2.7%) at $1,462 an ounce on the Comex division of the New York Mercantile Exchange on Thursday. May silver ended higher by $1.31 cents (5.7%) at $24.14 an ounce on Thursday.
Gainers outnumbered advancers by about two to one on the New York Stock Exchange and Nasdaq. NYSE volume topped 746 million shares, while Nasdaq volume topped 470 million shares. NYSE composite volume was above 3.8 billion shares while Nasdaq Composite volume was above 1.9 billion shares by the close.
Indian ADRs ended higher on Thursday. In the IT space, Infosys was up 0.1% and Wipro was up 1.5%. In the Banking space, HDFC Bank was up 0.4% and ICICI Bank was down 0.3%. In the Telecom space, Tata Communication was up 0.12%. In other space, Tata Motors was up 2.3%, Dr Reddys was up 3.2% and Sterlite was up 2.3%.
Tomorrow, first-quarter advance GDP will be reported at 8:30 ET while the final April Michigan Sentiment Survey will be released at 9:55 ET.
Powered by Capital Market - Live News
