Stocks fluctuate on mixed readings about economy
NEW YORK - Investors held off making big moves Thursday after mixed news on the economy outweighed several pleasant surprises from earnings reports.
Trading was relatively quiet following a late-day rally the day before. Earnings reports from banks and industrial companies fed hopes that some businesses might be stabilizing, but readings on the labor market and housing didn't provide clear signals on where the overall economy was heading.
In late morning trading, the Dow Jones industrial average fell 45.40, or 0.6 percent, to 7,984.22, but advancing stocks narrowly outpaced those that fell on the New York Stock Exchange.
JPMorgan Chase & Co. became the latest bank to report results that were stronger than predicted, and investors welcomed the news as another positive sign for the struggling industry. Goldman Sachs Group Inc. and Wells Fargo & Co. also had upbeat earnings news in the past week.
A five-week rally in the market since early March has been driven in large part by growing optimism that the financial industry is on the mend.
JPMorgan's first-quarter profit fell 40 cents per share from 67 cents per share a year ago, but that still beat analyst estimates of 32 cents per share, sending the bank up 85 cents, or 2.6 percent, to $33.41.
New government data provided uneven readings on the economy. New weekly claims for jobless benefits fell more than expected to 610,000 from 663,000 the week before, less than the 655,000 estimate of economists polled by Thomson Reuters.
But those continuing to file for claims again hit a record high, rising to 6 million.
A new housing report also showed weakness, with March construction of new homes and apartments falling to 510,000, the second-lowest level on record.
"Things are not necessarily getting better, but they are getting less worse," said David Stepherson, a portfolio manager at Hardesty Capital Management in Baltimore.
Broader stock indicators were mixed. The Standard & Poor's 500 index fell 0.62, or 0.1 percent, to 851.44, and the Nasdaq composite index rose 12.25, or 0.8 percent, to 1,639.05.
The tech-heavy Nasdaq's gain came after technology stocks lagged the broader market Wednesday after Intel Corp. disappointed the market by declining to provide revenue forecasts going forward.
The Russell 2000 index of smaller companies fell 1.44, or 0.3 percent, to 459.67.
About eight stocks rose for every 7 that fell on the NYSE, where volume came to 453.3 million shares.
The market is trying to sustain momentum a day after stocks moved higher amid a Federal Reserve report showing glimmers of hope in U.S. business conditions. The Dow gained 109 points Wednesday.
A bankruptcy filing by the nation's second-largest mall operator, General Growth Properties Inc., brought an unwelcome reminder of the economy's troubles and the dearth of available credit. The company said it was unable to persuade debtholders to give it more time to refinance its debt.
Earnings reports Thursday were generally more upbeat than some investors had been anticipating even as the results underscored how weak the economy remains.
Illinois Tool Works Inc. rose $2.13, or 6.8 percent, to $33.29 after results from the industrial products company weren't as bad as expected.
Harley-Davidson Inc.'s first-quarter earnings fell 37 percent but the company stood by its full-year forecast for motorcycle shipments. Harley rose $1.79, or 10 percent, to $18.91.
There were some disappointments. Southwest Airlines Co. reported a bigger-than-expected loss in the first quarter as traffic fell in what the chief executive called the carrier's toughest revenue environment ever.
Meanwhile, bond prices fell. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 2.81 percent from 2.77 percent late Wednesday.
The dollar rose against other major currencies, while gold prices fell.
Overseas, Japan's Nikkei stock average rose 0.1 percent. In afternoon trading, Britain's FTSE 100 rose 1.6 percent, Germany's DAX index gained 1.2 percent, and France's CAC-40 rose 1.6 percent.
A service of the Associated Press(AP)