By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks reversed earlier losses
and rose Thursday as upbeat earnings and deal news outweighed
weaker-than-expected retail sales in January and a surprise uptick
in weekly jobless claims.
Federal Reserve Chairwoman Janet Yellen's scheduled appearance
before the Senate Banking Committee on Thursday was postponed due
to a snowstorm.
The S&P 500 (SPX) rose 9.3 points, or 0.5% to 1,828.55, with
all 10 main sectors in positive territory. The Dow Jones Industrial
Average (DJI) added 56 points, or 0.4%, to 16,020.28. The Nasdaq
Composite (RIXF) rose 33 points, or 0.8%, to 4,235.15. Follow 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.
Still investors focused on deal news and a mixed bag of
earnings.
Time Warner Cable (TWC) climbed 7.1% 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 3.9%.
Shares of Charter Communications Inc. (CCMMV) were off 6.2%; the
rival cable operator had waged a monthslong battle to buy
Comcast.
Shares in Goodyear Tire & Rubber Co. (GT) rallied 9.7% after
the company reported a larger fourth-quarter profit and beating
estimates.
Cisco Systems Inc. (CSCO) fell 3.5% 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 8%.
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.
American International Group Inc. (AIG) and Kraft Foods (KRFT)
are due to report their quarterly results after the market
close.
In other financial markets, the mood was mostly downbeat. The
dollar declined, oil prices were lower and most metals prices
dropped. European stock markets traded lower and Asian bourses
closed in negative territory.
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