NEW YORK (AP) - Wall Street fluctuated in a narrow range Thursday as
investors struggled to discern a direction for the economy after reports showing
a modest increase in jobless claims and weakness in the manufacturing sector.
The data pointed to an economy that is hurting, but not experiencing as
rough a time as many investors expected after the near-collapse of the mortgage
market.
The Labor Department said the number of laid off-workers applying for
jobless benefits rose last week by 6,000 to 371,000 -- near the average analyst
forecast, and suggesting that the labor market remains weak but in check.
Another better-than-expected report came from the Philadelphia Federal
Reserve, which said regional manufacturing activity is contracting in May more
slowly than in April, and more slowly than analysts expected.
However, the Federal Reserve dealt the market a blow when it said industrial
output sank for the second straight month in April. The decline of 0.7 percent,
driven by big cutbacks in the automotive and other manufacturing industries, was
more than double the drop analysts predicted.
The Dow Jones industrial average rose 5.37, or 0.04 percent, to 12,903.75.
Broader stock indicators were mixed. The Standard & Poor's 500 index rose
2.13, or 0.15 percent, to 1,410.79, and the Nasdaq composite index rose 6.60, or
0.26 percent, to 2,503.30.
Investors also listened to a speech by Federal Reserve Chairman Ben Bernanke
in Chicago. Bernanke said he is "encouraged" by recent efforts by banks to raise
cash -- a trend that is helping to relieve the credit crisis.
Bond prices rose. The yield on the benchmark 10-year Treasury note, which
moves opposite its price, fell to 3.87 percent from 3.92 percent late Wednesday.
The dollar was lower against most other major currencies, and gold prices
rose.
In recent weeks, investors have been growing more optimistic recently that
the economy may not be as weak as many feared, and that inflation, despite the
soaring price of oil, is not out of control. But a major concern for the market
is whether higher food and energy costs are hampering Americans' ability to
spend.
On the New York Mercantile Exchange, crude prices surpassed $125 a barrel,
climbing back toward record levels.
And meanwhile, J.C. Penney said a pullback in consumer spending cut its
first-quarter profit in half, and predicted "difficult" conditions for the
entire year. But Penney's profit came in a bit better than expected, and its
shares rose 83 cents to $45.08.
In addition to economic data, investors waded through some deal-making news
Thursday.
CBS Corp. agreed to buy online technology news and entertainment company
CNet Networks Inc. for about $1.75 billion. The owner of the CBS television
network and TV stations said the deal will boost its online presence and allow
it to tap the growing market for online advertising.
CBS fell 97 cents, or 4.2 percent, to $23.85, while CNet rose $3.47, or 44
percent, to $11.42.
General Electric Co. plans to auction off its Louisville, Ky.-based
appliances business, according to The Wall Street Journal. GE has hired Goldman
Sachs Group Inc. to run an auction for the appliance division, according to the
newspaper, which quoted unidentified sources. The sale is seen yielding between
$5 billion and $8 billion. GE slid 13 cents to $32.38.
IAC/InterActiveCorp's Ask.com has bought a stable of Internet reference
sites that includes Dictionary.com in its latest effort to distinguish itself
from online search leader Google Inc. and other much larger rivals.
IAC/InterActiveCorp fell 22 cents to $23.51.
The Russell 2000 index of smaller companies rose 1.07, or 0.15 percent, to
737.14.
Advancing issues had a modest lead over decliners on the New York Stock
Exchange, where volume came to 358.1 million shares.
Overseas, Japan's Nikkei stock average rose 0.94 percent. In afternoon
trading, Britain's FTSE 100 rose 0.65 percent, Germany's DAX index fell 0.07
percent, and France's CAC-40 fell 0.01 percent.
Copyright 2008 Associated Press. All rights reserved. This material may not be
published, broadcast, rewritten, or redistributed.
|