By Anora Mahmudova and Carla Mozee, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks ended Thursday modestly
higher, as softer-than-expected economic data reinforced
speculation that the Federal Reserve won't rush to raise interest
rates.
Investors shrugged off a larger-than-expected jump in jobless
claims and mixed earnings from Wal-Mart Stores Inc. and Kohl's
Corp.
The S&P 500 (SPX) closed up 8.46 points, or 0.4%, at
1,955.18, with health-care stocks leading the gains. The Dow Jones
Industrial Average (DJI) gained 61.78 points, or 0.4%, to
16,713.58. The Nasdaq Composite (RIXF) rose 18.88 points, or 0.4%,
to 4,453.00.
Dow industrials component Wal-Mart (WMT)lowered its full-year
earnings forecast, while second-quarter operating profit met
analyst expectations and sales topped those views.
Department-store operator Kohl's (KSS) shares rallied after the
company posted slightly improved second-quarter earnings from a
year ago, despite a decline in sales. Same-stores sales turned
positive in July.
A report from the Labor Department showed initial jobless claims
rose more than expected, but remained close to prerecession levels,
boding well for the labor market. Analysts said that like most
recent economic data, this report was soft enough for the Fed not
to rush with rate hikes, but not too soft to raise worries about
the economy.
"Investors gave a jobless claims a pass, as the trend seems to
be intact," said Lawrence Creatura, portfolio manager at Federated
Investors.
Meanwhile, operators of brick-and-mortar stores are slowly
adjusting to a shift in consumer behavior, and, "We see a lot of
stocks that are now attractive because of that shift," he said. He
said the firm owns shares in American Eagle Outfitters
Inc.(AEO)
After Thursday's closing bell, embattled retailer J.C. Penney
(JCP) is projected to report a narrower second-quarter loss of 91
cents a share.
Nordstrom (JWN) also will release results after the close, and
analysts expect the upscale department store chain to post earnings
of 94 cents for its second quarter.
Also read: Why retail worries will only grow, and love for
Tesla
Stocks to watch
Tesla Motors Inc.(TSLA) extended the streak of record closes to
four straight sessions. Tesla stock has been climbing since
reporting strong second-quarter results.
The Class A shares of Warren Buffett's Berkshire Hathaway(BRKA)
have hurdled the $200,000 price level for the first time, nearly
eight years after first piercing the $100,000 mark. S&P Dow
Jones Indices' Howard Silverblatt noted that the shares crossed
above $100 in May 1977.
Cisco Systems (CSCO) shares fell after the network-equipment
maker said late Wednesday that it plans to cut up to 6,000 jobs.
(Read more about the day's notable movers here:
http://www.marketwatch.com/story/wal-mart-cisco-are-stocks-to-watch-thursday-2014-08-13.)
In other financial markets, the 10-year yield on U.S. Treasurys
fell to the lowest level in 14 months, at 2.4% after a robust
auction of long-dated bonds and a round of lackluster economic
data.
Among commodities, September oil futures (CLU4) fell more than
2% after a surprise uptick in stockpiles. December gold futures
(GCZ4) settled higher for the third session. European stocks were
higher and Asian stocks finished mixed, with Hong Kong's Hang Seng
losing 0.4%.
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