US stocks edge higher
Stocks rose for a fourth session in a row on Wall Street today.
Blue chip shares overcame several slips into negative territory to manage a modest gain, extending this week’s advance by the Dow Jones industrial average to more than 350 points.
Investors drew little guidance from a pair of economic reports, while oil prices were relatively steady after a sharp drop on Wednesday that helped drive stocks higher.
The Labour Department reported that the number of new people signing up for jobless benefits dropped sharply last week compared with a week earlier. However, the Conference Board reported that its Index of Leading Economic Indicators fell in April, the fourth consecutive decline in that gauge of future economic activity.
The strength in the labour market has helped drive the Federal Reserve’s policy of gradually raising interest rates to prevent an inflationary spurt in the economy’s growth. Wednesday’s stock rally was fuelled by a report showing mild inflation in April.
“We’ve seen a lot of mixed data, as is usually the case with fast growth going to slow and the Fed raising interest rates,” said Scott Wren, equity strategist for AG Edwards & Sons. “As the market becomes more comfortable with that, we think they’re going to be buying stocks.”
The Dow rose 28.74 to 10,493.19 – up 0.27% for the day and nearly 3.5% for the week – after wavering in a narrow range through the day.
The Standard & Poor’s 500 index rose 5.52, or 0.47%, to 1,191.08. The Nasdaq composite index rose 11.93, or 0.59%, to 2,042.58. The Russell 2000 index of smaller companies rose 2.58, or 0.42%, to 610.46.
The Dow’s biggest gainers were Exxon Mobil Corp. and General Motors Corp. Exxon Mobil rose 1.18, or 2.2%, to 54.83, while GM advanced 1.14, or 3.6%, to 32.75.
DuPont was among the Dow’s biggest decliners – falling 43 cents, or 0.9%, to 47.61 – after the company said it received a Justice Department subpoena for documents regarding perfluorooctanoic acid, a chemical used to make its non-stick Teflon product. The EPA has said PFOA could pose health risks.
Mike Viracola, co-head of equities at Adams Harkness in Boston, said the market’s sluggish turn may be a reflection that earnings reporting season is winding down.
On the energy front, oil futures rose toward US$48 (€38) per barrel level after falling sharply Wednesday following the release of data showing more strong growth in US crude supplies.
Payless ShoeSource rose 2.15, or 15.2%, to 16.28 after the discount footwear retailer said its first-quarter profit more than doubled, soundly beating Wall Street estimates.
Advancing issues outnumbered decliners by more than a 3-to-2 ration on the New York Stock Exchange, but by a narrower margin on the Nasdaq Stock Market.
NYSE volume totalled 1.37bn shares, down sharply from 1.78bn on Wednesday.
