By Wallace Witkowski and Sara Sjolin, MarketWatch
Stocks venture into positive territory after Fed speakers
U.S. stocks swung into positive territory Thursday, setting new
intraday highs, as investors shake off a mixed batch of economic
reports and Federal Reserve speakers in light of a stream of
better-than-expected earnings.
The Dow Jones Industrial Average (DJI) carved out new intraday
highs, rising 40 points, or 0.2%, to 18,153. About two-thirds of
the blue-chip indexes's 30 components were trading in positive
territory.
The S&P 500 index (SPX) rose 4 points to 2,111, with six out
of the indexes 10 major sectors showing gains, led by financials
and consumer staples.
Meanwhile, the tech-heavy Nasdaq Composite (RIXF) advanced about
4 points, or 0.1%, at 5,015. A soaring Netflix, which was up nearly
15%, helped boost the index.
Choppy trading in stocks on Thursday came after a pullback from
Wednesday's advances
(http://www.marketwatch.com/storyno-meta-for-guid), when
better-than-expected earnings and a jump in oil prices sent the
benchmarks close to record closing levels. The S&P 500 ended
just 0.5% shy of its all-time close of 2,117.39 hit Monday, March
2, while the Dow average missed its record by 1%.
Stocks ventured into positive territory after a handful of Fed
member gave speeches, with some suggesting that rate hike might not
come soon.
"When you have upside momentum and a lack of downside catalyst
it can keep [stocks] trudging higher," noted Randy Frederick,
managing director, at the Schwab Center for Financial Research.
Fed speakers: Atlanta Fed President Dennis Lockhart said the
central bank should wait on raising rates
(http://www.marketwatch.com/story/feds-lockhart-says-central-bank-should-wait-on-raising-rates-2015-04-16)
because of murky first-quarter economic data. Lockhart is a voting
member of the policy-setting Federal Open Market Committee this
year.
Meanwhile, Cleveland Fed President Loretta Mester, who isn't a
voter, said she would be comfortable with a rate hike "relatively
soon"
(http://www.marketwatch.com/story/feds-mester-comfortable-with-relatively-soon-liftoff-if-growth-regains-momentum-2015-04-16)
if economic growth regains momentum.
Boston Fed President Eric Rosengren, also a non-voter, said in
London that economic data needs to improve
(http://www.marketwatch.com/story/feds-rosengren-data-needs-to-improve-to-start-raising-rates-2015-04-16)
before the Fed can start raising rates.
Lastly, Stanley Fischer, the Fed's Vice Chairman, is slated to
talk about inflation at the International Monetary Fund at 3 p.m.
Eastern.
The hefty Fed lineup comes after comments on Wednesday from St.
Louis Fed President James Bullard
(http://www.marketwatch.com/story/feds-bullard-says-rate-hikes-are-needed-for-coming-boom-2015-04-15)
and Richmond Fed President Jeffrey Lacker
(http://www.marketwatch.com/story/feds-lacker-strong-case-can-be-made-for-higher-rates-2015-04-15),
when each made a case for raising interest rates soon.
Part of the drag on stocks Thursday was due to a mixed bag of
economic indicators. That included construction on new homes, which
were weaker than expected, and a manufacturing report that was
better than expected.
Construction starts rose to annual rate of 926,000 in March, but
analysts polled by MarketWatch had expected a 1.04 million
(http://www.marketwatch.com/story/housing-starts-thaw-in-march-after-february-freeze-2015-04-16),
while a report of people seeking new U.S. unemployment benefits in
the second week of April rose to the highest level in six weeks.
Initial jobless claims rose to 294,000
(http://www.marketwatch.com/story/jobless-claims-hit-highest-level-in-six-weeks-2015-04-16)in
the week ended April 11, from a revised 282,000 from the week
prior.
A reading of manufacturing also looked strong, with the
Philadelphia Fed's manufacturing index rising to 7.5 in April,
better than MarketWatch estimates of 6. Any reading above zero
signals improving conditions for manufacturing.
"I think it's the same flat trading we've been seeing for the
last few sessions and we probably have to wait until earnings next
week for some more meaningful move," said Dan Greenhaus, chief
strategist at BTIG, in emailed comments.
Corporate results on Thursday, however, have largely been
upbeat. Goldman Sachs Group Inc.(GS) reported profit and revenue
ahead of forecasts, but shares were trading down about 0.3% at last
check.
Perhaps speaking to optimism underpinning stock investors, a
crop of initial-public offerings, Party City Holdco Inc. (PRTY),
Brooklyn-based online marketplace Etsy Inc. (ETSY) and trading firm
Virtu Financial Inc. (VIRT) drew strong interest and double-digit
gains in the market
(http://www.marketwatch.com/story/etsy-virtu-and-party-city-rocket-on-first-day-of-post-ipo-trades-2015-04-16).
Citigroup Inc.(C) posted first-quarter results that beat
analysts expectations for profits but missed on revenues.
Also reporting ahead of the bell, UnitedHealth Group Inc.(UNH)
raised its outlook for 2015 earnings to $6.15 to $6.30 per share.
Its prior outlook was for $6.00 to $6.25 per share. The stock was
the best performer on the Dow, with shares up 3%.
Shares of Philip Morris International Inc.(PM) jumped 9% after
the cigarette maker reported a dip in first-quarter profit, but
raised its earnings guidance
(http://www.marketwatch.com/story/philip-morris-raises-guidance-shipment-volume-up-2015-04-16)
for the full year.
Netflix Inc. (NFLX) traded at a record high of $556.25 after the
video-streaming and DVD-rental company, after the close of trading
on Wednesday, said that added 4.88 million subscribers in the first
quarter
(http://www.marketwatch.com/story/netflix-adds-more-users-than-expected-shares-leap-2015-04-15).
(http://www.marketwatch.com/story/netflix-adds-more-users-than-expected-shares-leap-2015-04-15)
Other notable gainers included a trio of stocks on their first
day of trading
(http://www.marketwatch.com/story/etsy-virtu-and-party-city-rocket-on-first-day-of-post-ipo-trades-2015-04-16).
Having priced their initial public offerings late Wednesday, shares
of online crafts site Etsy Inc.(ETSY) jumped 80%, Party City Holdco
Inc.(PRTY) shares rallied 19%, and shares of high-frequency trading
firm Virtu Financial Inc. (VIRT) surged 18%.
Other markets: Asian bourses closed mostly higher
(http://www.marketwatch.com/storyno-meta-for-guid), while the major
European indexes were mired in the red
(http://www.marketwatch.com/storyno-meta-for-guid).
Crude oil (CLK5) swung to a gain after an earlier retreat
Thursday (http://www.marketwatch.com/storyno-meta-for-guid)adding
Wednesday's 6% rally. Metals rose, and the dollar
(http://www.marketwatch.com/storyno-meta-for-guid) moved lower.
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