By Chris Dieterich and Saumya Vaishampayan
U.S. stocks were little changed on Thursday after a
disappointing reading on the housing market contrasted with an
upbeat report on jobless claims.
The Dow Jones Industrial Average added four points, or 0.1%, to
17091.
The S&P 500 gained one point, or 0.1%, to 1987 after briefly
hitting an all-time intraday high of 1990.20.
The Nasdaq Composite Index fell four points, or 0.1%, to
4470.
Stocks opened higher after a report showed that Americans filed
the fewest applications for unemployment benefits last week since
February 2006. Initial jobless claims fell to 284,000, well below
expectations for 305,000.
But stocks pared gains after new-home sales fell 8.1% in June
from May, well below expectations. The May reading was also revised
significantly lower.
Investors also focused on quarterly corporate results. Early
reports have been mostly positive; analysts have revised higher
their estimates for earnings increases among S&P 500 companies,
now expecting a gain of 5.6% versus 4.9% previously, according to
FactSet.
Facebook jumped 5.5% after the social network reported that
profit more than doubled and revenue topped estimates late on
Wednesday. Facebook's strong report showed that the company was
successfully navigating the shift to mobile advertising as it
continues to add users.
Caterpillar fell 3% after earnings topped analysts'
expectations, but revenue came up short. The company pointed to
weaker sales in China, Africa and the Middle East and tightened the
range of its revenue estimates.
Results "in general have been great," said Kent Engelke, chief
economic strategist at Capitol Securities Management. "More
importantly, we're also having optimistic forward-looking
statements" on earnings growth, he said.
Ford Motor rose 1.4% after the car maker beat earnings
expectations, reporting strength in North America, Europe and
Asia.
General Motors slumped 2.9% after its profit sank 80% as the
auto maker was hit by recalls.
Markit's preliminary reading on U.S. factory activity in July
came in at 56.3, down from 57.3 a month earlier. Separately,
manufacturers located near the Kansas City Federal Reserve Bank are
due to post a July survey results on economic conditions.
A modest start for U.S. stocks followed gains overseas.
The Stoxx Europe 600 rose 0.3%, buoyed by data showing that
private-sector activity in the euro zone expanded faster than
expected in July. The composite purchasing managers index for the
region, which measures manufacturing and service-sector activity,
rose to a three-month high of 54.
The Chinese manufacturing sector rose for the second month in a
row in July, with the HSBC preliminary, or "flash," manufacturing
PMI rising to 52 from 50.7 a month earlier, reaching an 18-month
high. China's Shanghai Composite rose 1.3%, while Japan's Nikkei
Stock Average fell 0.3%.
Under Armour Inc. added 9.4% after the company reported that
strong footwear and apparel sales buoyed its second-quarter
results, and the company again raised its outlook for full-year
sales.
Qualcomm fell 7% after the wireless-tech company noted some
worries about licensees in China, even as it lifted its full-year
adjusted earnings outlook.
TripAdvisor slumped 10% after the online-travel website said its
second-quarter profit missed the expectations of Wall Street
analysts.
Write to Saumya Vaishampayan at saumya.vaishampayan@wsj.com and
Chris Dieterich at christopher.dieterich@wsj.com