Summary US stocks edge higher in afternoon trading to rebound from losses a day before
NEWYORK: (AP) U.S. stocks edged higher in afternoon trading Thursday, on track to rebound from losses a day before. Positive data on U.S. home sales, weekly applications for unemployment benefits and U.S. manufacturing helped lift the stock indexes. Investors also cheered strong earnings from several retailers.
KEEPING SCORE: The Standard & Poor s 500 index rose three points, or 0.2 percent, to 2,052 as of 2:24 p.m. Eastern time. The Dow Jones industrial average gained 17 points, or 0.1 percent, to 17,703. The Nasdaq composite added 23 points, or 0.5 percent, to 4,699. All three indexes had been lower in early trading.
THE QUOTE: "Housing was good, leading indicators were good, manufacturing was good," said Doug Cote, chief market strategist at Voya Investment Management. "On top of that, U.S. corporate earnings for the third quarter are at an all-time high," Cote added, referring to companies in the S&P 500.
HOME SALES: Sales of previously occupied U.S. homes jumped last month to the briskest pace this year. The National Association of Realtors said sales rose 1.5 percent to a seasonally adjusted annual rate of 5.26 million. October marked the first month this year in which sales increased compared with the same period a year ago. The report helped lift the stock prices of many homebuilders. William Lyon Homes led the gainers, adding 76 cents, or 4 percent, to $20.02.
RETAIL STANDOUT: Best Buy reported higher earnings and revenue in the third quarter, beating analysts forecasts. The results are a positive sign for the electronics retailer as the holiday season kicks off. Best Buy s shares jumped $2.21, or 6.2 percent, to $37.75.
EARNINGS BOOST: Discount retailer Dollar Tree and home decorations chain Kirkland s each got a boost from better-than-expected quarterly earnings. Dollar Tree gained $3.21, or 5.1 percent, to $65.84. Kirkland s jumped $3.78, or 20.9 percent, to $21.87.
SETTLEMENT DIVIDEND: Activision Blizzard vaulted 7.4 percent on news that the videogame maker reached a settlement with Vivendi and others in a shareholder lawsuit and will receive $275 million. Activision rose $1.45 to $21.02.
TACKLING DEBT: Caesars Entertainment is considering a plan to turn its most debt-heavy division into a real estate investment trust. Shares in the casino and resort operator rose 71 cents, or 4.9 percent, to $15.08.
SECTOR WATCH: Half of the 10 sectors in the S&P 500 index were up, led by energy stocks. Consumer staples declined the most.
BIG DECLINER: Keurig Green Mountain led the decliners in the S&P 500, shedding $12.81, or 8.3 percent, to $141.14.
GLOBAL ECONOMIC WORRIES: A broad gauge of business activity in the 18-country eurozone fell this month to a 16-month low, stirring concerns that the region could be headed for another recession. In China, a preliminary survey of factory activity showed manufacturing in the world s second-largest economy slid to a six-month low this month.
INFLATION IN CHECK: U.S. consumer prices were unchanged in October, as low gasoline costs continued to keep inflation at bay. For the past 12 months, overall inflation is up 1.7 percent, while core inflation, which excludes volatile energy and food prices, is up 1.8 percent. Both gains are below the Federal Reserve s 2 percent inflation target, giving the central bank leeway to keep interest rates low.
LAYOFFS BELLWETHER: The Labor Department said applications for unemployment benefits fell slightly last week to a seasonally adjusted 291,000. The applications, which are a proxy for layoffs, have fallen 16 percent in the past 12 months.
A GOOD SIGN: An index of regional factory activity in the U.S. jumped this month to the highest level since December 1993. The report from the Federal Reserve Bank of Philadelphia adds to other recent evidence that U.S. manufacturing is expanding modestly and helping boost economic growth. A measure of new orders soared and a gauge of shipments also rose. More firms in the area also said they were adding jobs.
OVERSEAS MARKETS: In Europe, France s CAC 40 dropped 0.8 percent, while Germany s DAX edged up 0.1 percent. Britain s FTSE 100 was off 0.3 percent. In Asia, Japan s Nikkei 225 inched up 0.1 percent, while South Korea s Kospi slipped 0.5 percent. China s Shanghai Composite rose 0.1 percent, while Australia s S&P/ASX 200 fell 1 percent. Hong Kong s Hang Seng shed 0.1 percent. Markets in Southeast Asia also fell.
COMMODITIES: Benchmark U.S. crude rose $1.12 to $75.64 a barrel in New York. Gold fell $3 to $1,190.90 an ounce, silver fell 16 cents to $16.14 an ounce and copper fell three cents to $3.02 a pound.
BONDS: U.S. government bond prices rose. The yield on the 10-year Treasury note fell to 2.33 percent from 2.36 percent late Wednesday.
