By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- The U.S. stock market rose on
Thursday, sending the S&P 500 into record territory, as
investors digested a slew of economic reports and speeches from
several Federal Reserve officials.
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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Before the opening bell, a report on weekly jobless claims
showed a larger-than-expected drop in the week ended March 1. 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.
Orders for goods produced in U.S. factories fell 0.7% in
January, the Commerce Department said Thursday. Economists surveyed
by MarketWatch expected orders to fall by 0.6%.
Apart from economic reports, several Federal Reserve officials
speaking today will attract investors' attention.
Staples, Costco earnings disappoint
Staples (SPLS) shares slumped 13% 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 3.1% 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 fell slightly after the company said
same-store sales rose in February.
Shares in Yum! Brands (YUM) rallied 2.1% after analysts at R.W.
Baird raised the stock to outperform from neutral.
Fed officials line up
New York Fed President William Dudley was being interviewed by
The Wall Street Journal. Atlanta Fed President Dennis Lockhart's
speech on the economic outlook at Georgetown University in
Washington D.C. is due at 6 p.m. Eastern.
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.
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.
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