By Victor Reklaitis and Barbara Kollmeyer, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks advanced early Thursday,
as the S&P 500 worked for a fourth straight day of gains and
moved above its July 24 record close.
Neither downbeat Chinese data nor a perceived hawkish set of
Federal Reserve minutes deterred upbeat sentiment, and Friday's
speech from Janet Yellen remains a market focus.
The S&P 500(SPX) gained 2 points, or 0.1%, to 1989. The
benchmark index is trading above its July 24 record close of
1,987.98, but below its intraday record of 1,991.39, also achieved
July 24.
The Dow Jones Industrial Average(DJI) gained 28 points, or 0.2%,
to 17,003, topping the big round number of 17,000. The Nasdaq
Composite(RIXF) rose 3 points, or 0.1%, to 4,530.
In other economic news, initial jobless claims fell by 14,000 to
298,000 last week, basically in line with the 300,000 claims
expected by economists surveyed by MarketWatch.
Three other economic reports are due at 10 a.m. Eastern, the
most closely watched of which may be existing-home sales for July,
which economists expect to hold steady. Also out at that time: the
Philadelphia Fed manufacturing survey for August and leading
indicators for July.
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. A Thursday report showing a three-month low
for Chinese factory data was also brushed aside.
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.
Wall Street closed modestly higher on Wednesday, finishing just
0.07% off its record close hit July 24, though some market watchers
are pointing out record closes are a commonplace occurrence. Also
read: "All-time high" is the "we should talk" of the stock
market.
High hopes for Jackson Hole: Kelly and other strategists said
not much will hold markets' attention ahead of Friday's speech from
Fed Chairwoman 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 2000 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: Sears Holdings Corp. (SHLD) fell 5.7% after
posting a large loss and margins shrank.
Dollar Tree Inc. (DLTR) was down 1.8% 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). (Read more: Family Dollar rejects
Dollar General's takeover bid
http://www.marketwatch.com/story/family-dollar-rejects-dollar-generals-takeover-bid-2014-08-21.)
Hewlett-Packard Co. (HPQ) rose 1.7% after the tech pioneer's
third-quarter profit fell, but beat forecasts late Wednesday.
Retailer Gap Inc. (GPS), which rose 0.4%, will grab the spotlight
after the closing bell. What to look for
Follow the day's notable stock moves here.
Other markets: The Stoxx Europe 600 index rose 0.5% 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 more
than 1%, continuing to lose ground after the Fed minutes.
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