By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch)--U.S. stocks reversed gains on Thursday,
as sentiment turned sour when selling in momentum stocks
intensified.
Optimism following better-than-expected jobless claims and
dovish comments from European Central Bank President Mario Draghi,
who said the ECB stood ready to act in June, faded by
midafternoon.
The S&P 500 (SPX) was a point lower at 1,879.29, hovering
near its record closing level.
The Dow Jones Industrial Average (DJI) rose 33 points, or 0.4%,
to 16,579.30, after topping its previous closing high earlier.
The Nasdaq Composite (RIXF) was 6 points, or 0.2%, lower at
4,066.53.
The Russell 2000 (RUT) index of small stocks gave up gains and
was 2 points, or 0.1%, lower at 1,106.10.
"A large drop in jobless claims this morning set a positive
tone," said Chris Gaffney, senior market strategist at EverBank
Wealth Management.
"In the absence of bad news, a combination of a
better-than-expected jobless report, comments from the Fed that the
rates will stay low and Draghi's mention of easing action in June,
drives markets higher," he added.
Follow MarketWatch's live blog of today's stock-market
action.
Federal Reserve Chairwoman Janet Yellen appeared before the
Senate Budget Committee in her second day of testimony before
Congress to discuss the central bank's economic and fiscal
outlooks.
Among her memorable comments were the ones about the middle
class the student debt: Answering questions from the senators,
Yellen said that the shrinking of the middle class is a disturbing
trend and student debt is preventing people from buying homes and
that is affecting the housing market.
In economic news, the number of people who applied for new
unemployment benefits last week fell to the lowest level in a
month, but the decline likely stemmed from seasonal quirks instead
of any major change in hiring trends or layoffs.
Initial jobless claims dropped by 26,000 to a seasonally
adjusted 319,000, the Labor Department said Thursday. Economists
surveyed by MarketWatch had expected claims to fall to 325,000 in
the week ended May 3.
Telsa skids, SolarCity soars
Tesla (TSLA) skidded 10% after its earnings report late
Wednesday. The company said it had a net loss of 40 cents a share.
Adjusted per-share income came in at 12 cents, versus analyst
forecasts of 8 cents. However, the auto maker's revenue of $621
million was below forecasts of $683.5 million, according to
FactSet.
An earnings report also pulled down Gulfport Energy Corp. (GPOR)
by 18%. The company earned 20 cents a share on revenue of $118
million, compared with analyst forecasts of 20 cents a share on
$123 million in sales.
Wynn Resorts Ltd. (WYNN) retreated 3% amid concerns about a
decline in demand in Macau, according to news reports. The concerns
for the casino company follow a crackdown on unlawful money
transfers in the region, a hot spot for gamblers in Asia.
SolarCity Corp. (SCTY) jumped 12% after reporting its
first-quarter earnings. The energy company said it had adjusted
per-share losses of 82 cents a share on revenue of $63.6 million.
The firm was expected to lose 70 cents per share on revenue of $53
million.
Keurig Green Mountain (GMCR) climbed 9.8% after its
second-quarter earnings report. The single-serving coffee maker
took in adjusted profits of $1.08 per share on sales of $1.10
billion. Forecasts had called for 95 cents a share in earnings on
revenue of $1.05 billion.
Shares of Priceline Group Inc. (PCLN) fell 1.7% after the
travel-services company's current-quarter forecasts fell short of
Wall Street's targets. Priceline also said first-quarter earnings
rose 36%, aided by growth in international bookings.
After the markets close on Thursday, media group CBS Corp. (CBS)
is projected to report first-quarter earnings of 75 cents a share,
and News Corp (NWSA) is likely to report fiscal third-quarter
earnings of 2 cents a share. News Corp.'s properties include
MarketWatch, the publisher of this report.
European stocks gain after Draghi's 'ready to act in June'
comment
Asian stocks rose following better-than-expected trade data from
China, while European stocks advanced after Draghi said the central
bank is ready to act in June.
The euro(EURUSD) fell sharply against the U.S. dollar after
Draghi's comments. Separately, the Bank of England held its key
rate at 0.5%, as expected.
Gold futures (GCM4) priced ticked up, after a 1.5% downturn
Wednesday. June oil futures (CLM4) were down 72 cents, or 0.7%, at
$100.05, stepping back from gains on Wednesday.
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