By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks closed higher on Thursday
as investors focused on upbeat earnings and deal news and shrugged
off weak economic data. The Nasdaq Composite rose for the sixth
consecutive session, its longest winning streak in two months.
Weaker-than-expected retail sales in January and a surprise
uptick in weekly jobless claims set a gloomy tone at the market
open, but indexes quickly reversed losses and moved higher.
The S&P 500 (SPX) closed 10.57 points, or 0.6%, higher at
1,829.83, with all 10 main sectors gaining. The Dow Jones
Industrial Average (DJI) added 63.65 points, or 0.4%, to 16,027.59.
The Nasdaq Composite (RIXF) rose 39.38 points, or 0.9%, to
4,240.67. Read the recap of our stock market live blog.
"Initial reaction to weak retail sales and jobless claims is
being replaced with fundamentals. Some of today's earnings and deal
news are providing support," said Chris Gaffney, senior market
strategist at EverBank. "The economic data were certainly
disappointing, but trends do not indicate a slide to recession.
Besides, Yellen has reassured investors that the Fed will stay
accommodative and there will be no tightening this year."
Sales at U.S. retailers fell sharply in January and December
turned out to be worse than initially reported, offering more
evidence that the economy may have softened toward the end of the
year.
Initial jobless claims rose by 8,000 to 339,000, the Labor
Department reported Thursday. Economists polled by MarketWatch
expected claims to fall slightly to 330,000. The four-week moving
average was 336,750, an increase of 3,500.
Federal Reserve Chairwoman Janet Yellen's scheduled appearance
before the Senate Banking Committee on Thursday was postponed due
to a snowstorm.
Investors focused on deal news and a mixed bag of earnings.
Time Warner Cable (TWC) climbed 7% on news that Comcast (CMCSA)
will buy TWC for $45.2 billion in a deal that would combine the two
biggest U.S. cable operators. Comcast shares fell 4.1%. Shares of
Charter Communications Inc. (CCMMV) fell 6.3%; the rival cable
operator had waged a month-long battle to buy Comcast.
Read: Biggest loser in Time Warner Cable deal may be you
Shares in Goodyear Tire & Rubber Co. (GT) rallied 11% after
the company reported a larger fourth-quarter profit and beat
estimates.
Cisco Systems Inc. (CSCO) fell 2.5% after the
networking-equipment company late Wednesday said its fiscal
second-quarter profit fell. Read: Cisco CFO: 'There's been a
slowdown, and it's very abrupt'
Also late Wednesday, Whole Foods Market Inc. (WFM) said its
fiscal first-quarter earnings rose, but the high-end supermarket
chain lowered its fiscal 2014 earnings-per-share outlook, sending
the shares down 7.2%.
Shares of PepsiCo Inc. (PEP) fell 2.2% even as the company
topped forecasts for its core earnings. The company also said it
would boost its annualized dividend by 15% and it planned to
increase share buybacks in 2014 to around $5 billion.
In other financial markets, the mood was mostly downbeat. The
dollar declined and oil prices were lower. Gold prices rose,
however. European stock markets fell and Asian bourses closed in
negative territory.
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