By Anora Mahmudova and Sara Sjolin, MarketWatch
Alcoa, Bed Bath & Beyond shares drop after earnings
results
NEW YORK (MarketWatch) -- After an earlier trip into the
negative territory U.S. stocks struggled to move higher on
Thursday. The main indexes were switching between small gains and
losses as worries about poor quarterly earning after Alcoa's
revenues missed estimates lingered.
The S&P 500 (SPX) was up 2 points, or 0.1%, to 2,083, with
five of its 10 main sectors trading lower. Utilities led the
losses, while energy stocks rallied thanks to a jump in oil
prices.
The Dow Jones Industrial Average (DJI) was flat at 17,902.
The Nasdaq Composite (RIXF) inched up 5 points, or 0.1%, to
4,955.
Mike Baele, senior portfolio manager at Private Client Reserve
at U.S. Bank Wealth Management, said stocks may be the best game in
town.
"Earnings estimates came down and valuations are on a high side,
but we still think that equities are attractive relative to other
assets," said Baele.
"In the next few weeks, investors will pay a lot of attention to
forward guidance from companies as they beat the lowered
threshold," he said, warning that outside risks, such as Europe's
currency problems and conflict involving Russia and Ukraine, pose
bigger risks than domestic growth.
FOMC reaction: Investors were still digesting the minutes from
the latest FOMC meeting, released on Wednesday, which showed
several members supported a June rate hike
(http://www.marketwatch.com/story/low-bar-set-for-fed-rate-hike-minutes-show-2015-04-08),
but also that others thought a rate hike wouldn't be warranted
until later in the year, as low oil prices and the strong dollar
would likely hold inflation down. U.S. stock markets ended the
Wednesday session slightly higher after the minutes
(http://www.marketwatch.com/storyno-meta-for-guid).
"What has been taken as dovish FOMC minutes didn't really shed
any new light on the path for interest rates. June has looked
unlikely for a while now, and any month beyond that will depend on
the data," said Craig Erlam, senior market analyst at forex broker
Oanda, in emailed comments.
Data: The number of Americans filing for initial unemployment
benefits
(http://www.marketwatch.com/story/us-jobless-claims-jump-14000-to-281000-2015-04-09)
rose by less than expected, while the rate of layoffs remained
historically low. Meanwhile, wholesale inventories edged up, as
sales fell, in a sign that demand over the winter slowed down.
Stocks to watch: Shares of Alcoa Inc.(AA) lost 4.9% after the
aluminum maker late Wednesday reported revenue that missed
forecasts
(http://www.marketwatch.com/story/alcoa-swings-to-profit-but-revenue-misses-2015-04-08)
and pointed to a challenging outlook.
Zynga Inc.(ZNGA) tanked 14% after the videogame maker late
Wednesday said chief executive Don Mattrick will leave the company
effective April 8
(http://www.marketwatch.com/story/zynga-ceo-don-mattrick-to-leave-company-founder-mark-pincus-to-be-ceo-2015-04-08-16911119),
to be replaced by founder and chairman Mark Pincus.
U.S.-listed shares of Novogen Ltd. (NVGN) surged 25% to $5.65
after the Australian biotech company said its experimental drug
Anisina was shown to kill melanoma cells.
Bed Bath & Beyond Inc.(BBBY) fell 5.8% after the retailer on
Wednesday reported fourth-quarter earnings in line with
forecasts.
Shares of Walgreens Boots Alliance Inc.(WBA) gained 2.5% after
the drugstore chain reported profit ahead of expectations
(http://www.marketwatch.com/story/walgreens-stock-rises-after-profit-beats-expectations-2015-04-09).
For more on today's notable movers, read Movers & Shakers
column.
(http://www.marketwatch.com/story/constellation-brands-walgreens-alcoa-in-focus-2015-04-08)
Other markets: Asian stock markets closed mostly higher
(http://www.marketwatch.com/storyno-meta-for-guid), powered by a
2.7% jump for the Hang Seng Index . Stocks in Europe followed suit,
with the Stoxx Europe 600 index on track to log an all-time closing
high (http://www.marketwatch.com/storyno-meta-for-guid).
Oil (CLK5) rebounded
(http://www.marketwatch.com/story/oil-slightly-recovering-after-previous-sessions-6-fall-2015-04-09)
from Wednesday's more-than-6% slide. Metals were mixed, while the
ICE dollar index (DXY) advanced.
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