By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- The U.S. stock market rose on
Thursday, boosted by a report showing a larger-than-expected drop
in weekly jobless claims ahead of the payrolls data due Friday.
Investors awaited a report on factory orders scheduled for 10
a.m. Eastern time. Several Federal Reserve officials speaking today
will attract investors' attention.
The S&P 500 (SPX) added 5.35 points, or 0.3%, to 1,879.29,
hitting an intraday high. If the index closes at this level or
higher, it will be its 50th record in the past 12 months.
The Dow Jones Industrial Average (DJI) gained 53 points, or
0.3%, to 16,411.64.
The Nasdaq Composite (RIXF) added 10.29 points, or 0.2%, to
4,368.37.
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Investors welcomed a slightly better-than-expected jobless
claims numbers. The number of people who applied for U.S.
unemployment benefits fell by 26,000 to 323,000 in the week ended
March 1, marking the lowest level since late November, the Labor
Department said Thursday. Like other economic reports, claims have
been distorted by a harsh winter. The four-week average that
reduces the effects of weather and other unusual factors fell by
2,000 to 336,500, and it's shown little change in 2014.
The jobless claims data come ahead of Friday's nonfarm-payrolls
report, which is expected to show job gains of around 140,000 for
February.
U.S. productivity growth in the fourth quarter was reduced to a
1.8% annual rate instead of 3.2% as originally reported, the Bureau
of Labor Statistics said. The revision matched economists'
forecasts.
The Federal Reserve will release its quarterly report on
household wealth at noon Eastern time, which will give a glimpse of
whether consumers and businesses are cutting back on debt or adding
to it.
Staples, Costco earnings disappoint
Staples (SPLS) shares slumped 11% after the company posted
declines in sales and traffic for its fiscal fourth quarter,
disappointing Wall Street. It also forecast a sales decline in the
first quarter of 2014 and said it would close 225 stores by the end
of 2015.
Costco (COST) dropped 3.3% after fiscal second-quarter profit
declined 15%. The retailer said the first four-week period of the
quarter made up the bulk of earnings underperformance. Same-store
sales rose 4% in the U.S. and 5% internationally. Read: Polar
Vortex set to slow February sales.
Children's Place Retail Stores Inc. (PLCE) shares slumped 11%
after the retailer of children's clothes posted a fall in earnings
and sales year-over-year and said it sees first-quarter comparable
sales off 2% to 4%.
L Brands Inc. (LB) shares rose slightly after the company said
same-store sales rose in February.
Shares in Yum! Brands (YUM) rallied 2.8% after analysts at R.W.
Baird raised the stock to outperform from neutral.
Fed officials line up
Philadelphia Fed President Charles Plosser told CNBC on Thursday
that he's "very worried" about potential for unintended
consequences of the Fed's quantitative easing program. He told CNBC
that the U.S. "may never return" to its previous growth rates, and
it could be "many, many years" before that happens.
Mixed in between, a few top Fed officials should garner close
attention from Wall Street. New York Fed President William Dudley
will be interviewed by The Wall Street Journal and field questions
at 8:30 a.m. Eastern. Atlanta Fed President Dennis Lockhart's
speech on the economic outlook at Georgetown University in
Washington DC is due at 6 p.m. Eastern.
Late Wednesday, Richard Fisher, president of the Federal Reserve
Bank of Dallas, said in a speech in Mexico City that he was
concerned about "eye-popping levels" of some stock markets, and
that the central bank must monitor signs carefully to be sure
another bubble isn't forming.
Wall Street finished a choppy day of trading on Wednesday mostly
lower. The S&P 500 index (SPX) closed down less than a point at
1,873.81. The week, which started with a dramatic plunge on fears
surrounding the Russia-Ukraine crisis, has so far produced a gain
of 0.8% for the index, but the Dow industrials (DJI) is up just
0.2%. The Nasdaq Composite (RIXF) has fared better, with a nearly
1.2% gain, while the small-cap Russell 2000 index (RUT) is up
nearly 2%.
European stocks stayed firm after the ECB decision. Asian
markets closed on a largely stronger footing.
The dollar was mostly lower against major currencies in choppy
trade, while gold and oil were also down.
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