By Sara Sjolin and Victor Reklaitis, MarketWatch
Shake Shack rallies after well-received earnings report
U.S. stocks stepped higher early Thursday, though they continue
to show sideways, range-bound action this month.
Before the open, stock futures had maintained their gains after
weekly jobless claims and a headline figure for inflation both
unexpectedly declined.
The S&P 500 (SPX) was last up 12 points, or 0.6%, to 2,110,
cutting its weekly drop to 0.3%. Information technology and
utilities performed best among the benchmark's 10 sectors, and
consumer discretionary was the only sector losing ground.
The Dow Jones Industrial Average (DJI) tacked on 132 points, or
0.7%, to 18,192, trading within 100 points of its all-time closing
high of 18,288.63 set on March 2. The Nasdaq Composite (RIXF)
gained 26 points, or 0.5%, to 5,008. Both the Dow and Nasdaq have
turned roughly flat for the week.
"A breakout has been elusive for the SPX as investors have
focused beyond the equity market," said Katie Stockton, chief
technical strategist at BTIG, in a note Thursday. Investors have
been fixated on a volatile bond market
(http://www.marketwatch.com/story/treasury-prices-rise-after-weak-data-as-eurozones-bonds-also-rebound-2015-05-13),
among other things.
Check out: Here's what happens to stocks once the bond rout ends
(http://www.marketwatch.com/story/why-dollar-bulls-should-take-the-plunge-now-2015-05-06)
"As earnings season winds down, we would note that support
levels remain intact for the major indices, and breakdowns were not
too numerous among individual stocks," Stockton added.
Thursday's gains come after U.S. stocks closed virtually
unchanged
(http://www.marketwatch.com/story/us-stocks-poised-to-break-two-day-losing-streak-2015-05-13)
on Wednesday, as early gains faded The benchmarks had initially
traded higher, after disappointing U.S. retail sales may have
prompted investors to bet that the Fed would delay interest-rate
increases this year.
The weak retail report also sent the dollar (DXY) sharply lower
Wednesday--a slide it continued
(http://www.marketwatch.com/story/dollar-index-slides-to-lowest-since-january-2015-05-14)
on Thursday. Read: Weakening dollar may boost second-quarter
earnings
(http://www.marketwatch.com/story/strengthening-dollar-may-boost-second-quarter-earnings-2015-05-13)
Thursday's economic reports: The latest reading for initial
weekly jobless claims showed a dip by 1,000 to 264,000
(http://www.marketwatch.com/story/jobless-claims-dip-to-264000-remain-at-15-year-low-2015-05-14),
as the pace of layoffs remains around a 15-year low. Economists
polled by MarketWatch had expected claims to rise to a seasonally
adjusted 275,000.
U.S. producer prices fell
(http://www.marketwatch.com/story/producer-prices-drop-04-in-april-on-lower-energy-food-costs-2015-05-14)
a seasonally adjusted 0.4% in April. Economists polled by
MarketWatch had predicted no change.
There are no Federal Reserve speakers scheduled for Thursday,
but European Central Bank President Mario Draghi will speak at the
International Monetary Fund in Washington at 11 a.m. Eastern Time.
Read: Fed's rate-hike path, not timing, is what matters, says
Schwab strategist
(http://www.marketwatch.com/story/schwab-strategist-says-hike-path-not-timing-is-what-to-focus-on-2015-05-13)
Individual movers: Shares in Shake Shack Inc.(SHAK) jumped about
9% after the burger chain late Wednesday reported first-quarter
results that topped estimates from Wall Street analysts
(http://www.marketwatch.com/story/shake-shack-raises-revenue-outlook-after-loss-2015-05-13).
Kohl's Corp.(KSS) reported first-quarter sales below forecasts
(http://www.marketwatch.com/story/kohls-reports-weak-sales-growth-stock-falls-2015-05-14),
sending shares 11% lower for the biggest drop among S&P 500
stocks.
Cisco Systems Inc.(CSCO) was up 0.9% after losing grounding in
premarket action. Investors are digesting the tech giant's
quarterly report, which came out late Wednesday and showed
better-than-expected profit and revenue
(http://www.marketwatch.com/story/cisco-beats-quarterly-expectations-as-product-sales-grow-2015-05-13).
Read more in Thursday's Movers & Shakers column
(http://www.marketwatch.com/story/kohls-nordstrom-applied-materials-shares-in-focus-2015-05-14)
Other markets: European stock markets were higher after erasing
losses (http://www.marketwatch.com/storyno-meta-for-guid), while
Asian bourses
(http://www.marketwatch.com/story/australian-shares-fall-on-iron-ore-weakness-2015-05-13-231034025)
closed mixed. Gold futures (GCM5) gained, while crude oil (CLM5)
also moved higher
(http://www.marketwatch.com/storyno-meta-for-guid).
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