By Kate Gibson, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks climbed on Thursday, with
the S&P 500 gaining a day after halting a run to a record high,
with equities picking up steam along with large-cap companies such
as Apple Inc. and Exxon Mobil Corp. on signs of an improving global
economy.
"If these companies are strengthening," then the rest of the
market will too, said Dan Greenhaus, chief global strategist at
BTIG LLC. Beyond iPhone maker Apple (AAPL) and oil producer Exxon
Mobil (XOM), he listed Wal-Mart Stores Inc. (WMT) and General
Electric Co. (GE) as bolstering the overall market.
The Dow Jones Industrial Average (DJI) gained 95.88 points, or
0.6%, to 15,509.21.
The S&P 500 index (SPX) climbed 5.69 points, or 0.3%, to
1,752.07. Consumer discretionary led sector gains among the S&P
500's 10 major sectors, while utilities paced the declines.
The Nasdaq Composite (RIXF) added 21.89 points, or 0.6%, to
3,928.96.
"We're just getting back a little bit of what we gave up
yesterday. There is no impetus for the Federal Reserve to begin its
tapering programs; prospects are now deferred well into the first
quarter of 2014," said Mark Luschini, chief investment strategist
at Janney Montgomery Scott.
"And, we're actually starting to get some numbers on the revenue
side that are better than expected," said Luschini, pointing to
AutoNation Inc. (AN) and 3M Co. (MMM) as examples. "Since the start
of July, the dollar has fallen about 6%, and large multi-nationals
are getting a bid as a consequence of that," he added.
On Thursday, the dollar (DXY) edged lower against the currencies
of major U.S. trading partners, including the euro (EURUSD) and the
yen (USDJPY).
Ford Motor Co. (F) climbed 1.4% after the auto maker reported
earnings that topped estimates. Symantec Corp.'s (SYMC) shares fell
almost 13% after the security-software provider projected sales and
profit beneath Wall Street's expectations.
For every three stocks falling, more than four rose on the New
York Stock Exchange, where 716 million shares traded. Composite
volume approached 3.6 billion.
Gold futures (GCZ3) rose $16.30, or 1.2%, to $1,350.30 an ounce.
Borrowing costs reflected in the 10-year Treasury note (10_YEAR)
yield rose 1 basis point to 2.514%.
"Gold is firming a little bit, which is a signal of deferred
tapering prospects, and bond prices are reacting in the same vein.
They are all saying the same thing, that from what we've seen,
there is no impetus for monetary policy to shift. Given gold's
positive view of that, and the bond market's complacent view of
that, equity prices remain well bid," Luschini offered.
Energy prices reversed course after a three-session slide, with
crude-oil futures (CLZ3) rising 25 cents, or 0.3%, to $97.11 a
barrel.
"It's a tax cut being applied to the consumer in the form of
lower gas prices, which is particularly important leading into the
all-important holiday season," said Luschini, referring to the
commodity's recent slide.
HSBC Holdings PLC and Markit's China purchasing managers' index
rose to 50.9 this month, with the initial read illustrating the
world's second-largest economy is gaining traction.
The preliminary reading of Markit's U.S. flash manufacturing
purchasing managers index fell to 51.5 in October from 52.8 in
September, with Markit's chief economist blaming the government
shutdown for the pullback.
Other U.S. economic data had jobless benefits falling by 12,000
to 350,000 last week, but the count was viewed as distorted due to
computer problems in California.
The claims data "should not have much bearing on the market
since there were major issues with California's computers during
that time," Kevin Giddis, a fixed-income analyst at Raymond James,
noted in emailed commentary.
A separate report found the U.S. trade deficit little changed in
August, with both imports and exports losing steam.
"Leading into September, where we expected tapering to begin,
good news was good news. Suddenly bad news is good. I think that's
perverse, but that's what's driving the market right now," said
Luschini.
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