By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- The U.S. stock market wobbled in early
trade Thursday, but managed to resume upward trajectory, sending
the benchmark S&P 500 into record territory.
Investors shrugged off revisions to the first-quarter GDP data
showing the economy contracted 1% and focused instead on
better-than-expected jobless claims figures, pointing to continued
improvement in the labor market and deal news surrounding Hillshire
Brands Co.
The S&P 500 (SPX) was 4 points, or 0.2%, higher at 1,913.59,
after briefly topping its previous intraday record reached on
Tuesday.
The Dow Jones Industrial Average (DJI)gained 21 points, or 0.2%,
to 16,658.84.
The Nasdaq Composite (RIXF) rose 14 points, or 0.4%, to
4,242.16.
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action.
Terry Sandven, chief equity strategist at U.S. Bank Wealth
Management, notes the split personality between stocks and
bonds.
"Equity markets are hitting record highs while 10-year Treasury
yields are at below 2.5%, which suggest the economy growing at a
slower pace than expected," Sandven said.
"We expect continuation of a sideways trading until we get more
confirmation from economic data, specifically payrolls and
manufacturing due next week," he added.
In data news, the U.S. economy contracted in the first quarter
for the first time in three years, hampered by harsh weather that
disrupted business operations and slowed construction, according to
newly revised government figures.
Separately, the number of people applying for U.S. unemployment
benefits sank last week to the second-lowest level since the
recession ended in mid-2009, suggesting continued improvement in a
labor market that's perked up in the early spring.
A gauge of pending home sales rose 0.4% in April -- the second
consecutive gain after slumping since the summer -- signaling that
sales of existing homes may pick up, the National Association of
Realtors reported Thursday.
In corporate news, Hillshire Brands Co. (HSH) soared 15% after
Tyson Foods Inc. (TSN) offered to buy the maker of Jimmy Dean
sausage for $50 a share in cash, topping Pilgrim's offer of $45 a
share. Tyson Foods shares rose 5.7%, putting it at the leading spot
on the S&P 500.
Reporting ahead of the open, Abercrombie & Fitch Co. (ANF)
posted a narrower loss than expected and posted first-quarter sales
that beat forecasts. Shares rallied 5.7%.
Shares of Palo Alto Networks Inc. (PANW) surged 9.7% after the
cybersecurity company late Wednesday reported fiscal third-quarter
results that topped Wall Street estimates.
On a more downbeat note, shares of Tilly's Inc. (TLYS) tanked
21% after the retailer on Wednesday forecast second-quarter
earnings of 3 cents to 7 cents a share with same-store sales to
"decline in the high single digits." Analysts expect second-quarter
earnings of 13 cents a share.
Amsurg Corp. (AMSG) shares rallied 8.4% after said it said it
will buy Sheridan Healthcare in a cash-and-stock deal valued at
$2.35 billion.
In other financial markets, most Asian markets closed in the
red, while the European indexes wobbled between gains and losses.
Most metals(GCQ4) declined, while oil futures (CLN4) inched lower.
The dollar (DXY) fell against most other major currencies.
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