By Anora Mahmudova and Sara Sjolin, MarketWatch
Priceline Group surges on earnings beat
NEW YORK (MarketWatch)--U.S. stocks picked up steam in afternoon
trade Thursday as calmer oil prices and upbeat earnings from
companies such as Priceline Group and B.J.'s Restaurants provided
support.
Investors shook off earlier worries about the continued impasse
between Greece and its creditors over loans.
The S&P 500 (SPX) was up slightly, with five of its main
sectors trading higher. Consumer discretionary stocks led the
gains, while the energy sector pared most of the earlier
losses.
The Dow Jones Industrial Average (DJI) was off 13 points to
18,016, with more than two thirds of its 30 members trading higher.
Boeing Co and Johnson & Johnson led the gains.
The Nasdaq Composite (RIXF) outperformed other benchmarks,
adding 0.4% to 4,924.
Kim Forrest, senior investment strategist at Fort Pitt Capital,
said the oil price appreciation over the past few weeks was likely
unwarranted.
"There were no fundamental reasons for oil to recover from $43
to $53 a barrel, so I would argue that that was due to
short-covering trades. So, when investors realize that there is a
lot of oil stored, prices got hit again," Forrest said.
"Weak opening on Wall Street is not surprising, as we have been
getting a lot of weak data, despite strong unemployment figures.
But as interest rates and inflation keep falling, multiples keep
rising. The trend lately has been that stocks open weaker and rise
towards the end," she said.
Forrest also cautioned that disinflation, which is primarily due
to oil plunge, is temporary.
"Just as disinflation is temporary, multiple expansion is
temporary and when stocks get too expensive they have a tendency to
drop dramatically," she said.
Oil blues: Energy companies and oil-related funds were hit hard
in early trade, but as crude-oil prices (CLH5) pared losses, stocks
trimmed their losses as well. Among oil-tracking indexes, the iPath
Goldman Sachs Crude Oil Total Return Index ETN (OIL) fell 1.1%, and
the Velocity Shares 3X Long Crude ETN (UWTI) slumped 2.6%.
Data: Economic data on Thursday was mixed. Weekly jobless claims
report was better than expected. Meanwhile, leading U.S. economic
indicators edged up in January but the index pointed to some
moderation in growth. Philadelphia Fed index disappointed, pointing
the economy might have hit a soft patch.
In overseas news, the impasse between Greece and is creditors
continued, after Germany rejected Greece's request
:(http://www.marketwatch.com/story/germany-rejects-greeces-loan-extension-proposal-reports-2015-02-19-791282)for
a six-month loan extension agreement. The full Eurogroup of
eurozone finance ministers is scheduled to meet again on
Friday.
'Germany's gone too far': Rejection of Greek debt plan draws
quick Twitter
reaction:(http://www.marketwatch.com/story/germanys-rejection-of-greek-debt-plan-draws-quick-twitter-reaction-2015-02-19)
Earnings
T-Mobile US Inc.(TMUS) said it swung to a profit in the fourth
quarter:(http://www.marketwatch.com/story/t-mobile-us-swings-to-profit-as-revenue-surges-2015-02-19-64853617)
and reported a better-than-expected increase in revenue. Shares
rose sharply.
Hormel Foods Corp.(HRL) beat Wall Street's earnings
expectations:(http://www.marketwatch.com/story/hormel-lifts-guidance-as-after-posting-strong-quarter-2015-02-19)
and raised its 2015 adjusted earnings guidance. Shares rose
0.9%.
Wal-Mart Stores Inc.(WMT) reported quarterly earnings that
missed Wall Street's expectations as it laid out a plan to raise
employee pay. Shares fell 1.1%.
Priceline Group Inc.(PCLN) shares popped 7.5% after profit and
sales beat expectations.
SolarCity Corp.(SCTY) slumped 7.8% after the solar-energy firm
late Wednesday said it swung to a fourth-quarter loss of 4 cents a
share, from a profit of 28 cents a share a year ago.
BJ's Restaurants Inc.(BJRI) surged 10% after reporting a sharp
rise in
profit:(http://www.marketwatch.com/story/bjs-restaurants-gains-on-stronger-than-expected-results-2015-02-18)
for the fourth quarter.
For more on notable movers, read our Movers & Shakers
column:(http://www.marketwatch.com/story/wal-mart-priceline-t-mobile-earnings-in-focus-2015-02-18).
Other markets: In Asia, Japanese stocks rose to a 15-year
intraday high:(http://www.marketwatch.com/storyno-meta-for-guid),
while the rest of Asia closed mixed. Chinese markets were closed
for the Lunar New Year celebrations.
Gold rallied (GCJ5) after the Federal Open Market Committee
minutes dashed hopes of a midyear rate increase.
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