By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- The U.S. stock market rose Thursday,
pushing the S&P 500 to an intraday high and its 13th record
close this year.
Investors shrugged off data showing the economy contracted in
the first quarter and focused instead on better-than-expected
jobless claims and deal news in the food industry.
Analysts questioned new highs on the benchmark S&P 500 as
volumes on Wall Street have been thin. For NYSE-listed shares, it
was the fourth-lowest volume day of the year.
The S&P 500 (SPX) rallied into the close and finished at its
intraday record level, adding 10.25 points, or 0.5%, to
1,920.03.
The Dow Jones Industrial Average (DJI) added 65.56 points, or
0.4%, to 16,698.74.
The Nasdaq Composite (RIXF) ended the day up 22.87 points, or
0.5%, at 4,247.95.
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action.
Terry Sandven, chief equity strategist at U.S. Bank Wealth
Management, notes the split personality between stocks and
bonds.
"Equity markets are hitting record highs while 10-year Treasury
yields are at below 2.5%, which suggest the economy growing at a
slower pace than expected," Sandven said.
"We expect continuation of a sideways trading until we get more
confirmation from economic data, specifically payrolls and
manufacturing due next week," he added.
Disappointing GDP data did little to stall the rally. The U.S.
economy contracted in the first quarter for the first time in three
years, hampered by harsh weather that disrupted business operations
and slowed construction, according to newly revised government
figures.
Separately, the number of people applying for U.S. unemployment
benefits sank last week to the second-lowest level since the
recession ended in mid-2009, suggesting continued improvement in a
labor market that's perked up in the early spring.
A gauge of pending home sales rose 0.4% in April -- the second
consecutive gain after slumping since the summer -- signaling that
sales of existing homes may pick up, the National Association of
Realtors reported Thursday.
In corporate news, shares of Hillshire Brands Co. (HSH) soared
18% after Tyson Foods Inc. (TSN) offered to buy the maker of Jimmy
Dean sausage for $50 a share in cash, topping Pilgrim's offer of
$45 a share. Tyson Foods shares rose 6.1%, putting it at the
leading spot on the S&P 500. Also read: What Tyson and
Pilgrim's Pride see in Hillshire.
Reporting ahead of the open, Abercrombie & Fitch Co. (ANF)
posted a narrower loss than expected and posted first-quarter sales
that beat forecasts. Shares rallied 5.8%.
Shares of Palo Alto Networks Inc. (PANW) jumped 5.3% after the
cybersecurity company late Wednesday reported fiscal third-quarter
results that topped Wall Street estimates.
Shares of Tilly's Inc. (TLYS) tanked 17% after the retailer on
Wednesday forecast second-quarter earnings of 3 cents to 7 cents a
share with same-store sales to "decline in the high single digits."
Analysts expect second-quarter earnings of 13 cents a share.
Amsurg Corp. (AMSG) shares rallied 6.9% after said the operator
of ambulatory surgery centers said will buy Sheridan Healthcare in
a cash-and-stock deal valued at $2.35 billion.
In other financial markets, most Asian markets closed in the
red, while the European indexes closed mostly higher. Most
metals(GCQ4) declined, while oil futures (CLN4) settled higher. The
dollar (DXY) fell against most other major currencies.
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