By Victor Reklaitis and Barbara Kollmeyer, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks advanced Thursday, as the
S&P 500 worked for a fourth straight day of gains and set an
intraday record.
Reports on existing-home sales and manufacturing topped
forecasts, and expectations of dovish notes in Friday's speech from
Federal Reserve Chairwoman Janet Yellen also boosted sentiment.
The S&P 500 (SPX) gained 5 points, or 0.2%, to 1,992 after
hitting an intraday record at 1,992.68. The benchmark index is also
on pace for a record close, trading above its July 24 all-time
closing high of 1,987.98. (Read more: Why a new all-time high
doesn't mean a crash is due
http://blogs.marketwatch.com/thetell/2014/08/21/no-new-all-time-highs-dont-mean-the-market-is-due-for-a-crash/.)
The Dow Jones Industrial Average (DJI) rose 68 points, or 0.4%,
to 17,047, moving back above the big round number of 17,000. The
Nasdaq Composite (RIXF) rose less than 1 point to 4,527.
Today's market-moving economic data: An August reading for the
Philadelphia Fed index, a manufacturing gauge, came in at 28,
besting forecasts for 18, and a manufacturing gauge from Markit
also jumped. Meanwhile, sales of existing homes rose 2.4% in July
to 5.15 million, above expectations, and initial weekly jobless
claims came in basically in line with forecasts.
Thursday's encouraging economic reports have provided a lift to
U.S. stocks, said Kim Caughey Forrest, a portfolio manager and
senior equity analyst at Fort Pitt Capital Group. The good news
might have been bad news for the market, spurring worries the Fed
could pull back sooner from its stimulus efforts, but the central
bank has been offering "soothing words," she told MarketWatch.
""It looks like regardless of how long the Fed hawks are
talking, the doves are winning at this point," Forrest said.
With time to mull it over, investors appeared to further shrug
off the Fed minutes released Wednesday that showed some officials
arguing the groundwork should be laid for raising interest rates
sooner than expected.
Brenda Kelly, chief market strategist at IG Markets, said the
Fed minutes mostly revealed officials had debated whether to raise
rates sooner than expected. "It's still unlikely that it's going to
be immediate and remains data dependent," she said in emailed
comments.
High hopes for Jackson Hole: Kelly and other strategists said
not much will hold markets' attention ahead of Friday's speech from
Fed chief Yellen at Jackson Hole, Wyo. European Central Bank
President Mario Draghi will speak the same day.
"Markets are making hay while the sun shines -- possibly in a
delusional manner based on previous equity moves in the runup and
aftermath of the Jackson Hole symposium. Yellen, however, is not
Bernanke, and she may offer some surprises," Kelly said.
Other strategists are sounding at least slightly cautious in the
short term following the S&P 500's two-week uptrend.
"Despite hints by the FOMC that rate hikes may come sooner than
widely anticipated, the S&P 500 appears to be on a mission to
eclipse the 2,000 level before considering the consequences of an
uncontrolled advance," said Sam Stovall, an equity strategist at
S&P Capital IQ, in emailed comments.
Individual stocks: Hewlett-Packard Co. (HPQ) and Hormel Foods
Corp.(HRL) were among the biggest winners in the S&P 500,
rising 5% and 4.9%, respectively, after each company posted
quarterly profit that topped expectations. Follow the day's notable
stock moves here.
EBay Inc. (EBAY) shares rose 3.8% on speculation that the
company may spin off its PayPal payments unit.
Shares of retailer Gap Inc. (GPS) shed 0.3% in the lead up to
quarterly earnings after the closing bell. What to look for
Dollar Tree Inc. (DLTR) shares were down 1.4% after reporting
quarterly results and as Family Dollar Stores Inc. (FDO) reaffirmed
its support for Dollar Tree's takeover bid, rejecting a rival offer
from Dollar General Corp. (DG)
Other markets: The Stoxx Europe 600 index rose as investors
pushed aside a mixed bag of purchasing managers indexes and looked
to recent market weakness as a buying opportunity. The China data
wasn't overlooked in Hong Kong, where the Hang Seng index snapped a
four-session winning streak. Elsewhere, gold(GCZ4) was down,
continuing to lose ground after the Fed minutes.
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