By Anora Mahmudova and Barbara Kollmeyer, MarketWatch European
PMI data was weakest in 16 months
NEW YORK (MarketWatch) -- U.S. stocks shook off early gloom and
moved decidedly higher on Thursday, led by gains in retail and
energy sector stocks.
Ahead of the opening bell, stock futures were under pressure
after a batch of economic indicators from Europe and China showed
weakness. However, markets were able to shake off those concerns
following some upbeat data as well as better-than-expected earnings
from retailers.
Among Tuesday's positive economic releases was a rise in
existing home sales, a jump in the Philly Fed index and weekly
jobless claims remaining below 300,000 for the 10th straight
week.
Consumer prices were flat in October, while U.S. November Markit
flash PMI was the weakest since January, declining for a third
straight month.
The S&P 500 (SPX) and the Dow Jones Industrial Average (DJI)
moved above their previous closing record, reached on Tuesday. The
Energy and Consumer discretionary sector stocks were leading the
gains on the S&P 500.
The Nasdaq Composite (RIXF) also rose.
Goldman's call for S&P 500 and data on tap: The investment
bank said in its equity outlook for 2015 that the S&P 500
should rise to 2,100 by the end of that year, making for a "modest"
5% total return. It added that the market reaction to the first
Federal Reserve rate hike in six years should be "benign."
But Goldman also said 2015 will be challenging for active equity
managers, with low volatility continuing to be a theme. The S&P
500 will rise to 2,150 by mid-year, but then slip during the second
half, it forecast.
(Also see: Consumer spending to benefit from gas that is cheaper
than milk
http://www.marketwatch.com/story/consumer-spending-to-benefit-from-gas-thats-cheaper-than-milk-2014-11-19.)
Stocks in focus: Best Buy Co.(BBY) shares jumped after earnings
beat forecasts.
Dollar Tree Inc. shares surged beat third-quarter sales and
profit expectations, posting its best sales figures since 2011.
Salesforce.com(CRM) fell after the cloud-computing company's
weak outlook overshadowed its slight beat on the third quarter.
Caesars Entertainment Corp.(CZR) soared after Bloomberg News
reported the casino operator plans to turn its largest unit into a
real-estate investment trust.
For more about today's movers, read our regular column on Movers
and Shakers
In other markets: Markit reported that the flash November
reading for the composite purchasing managers index in the eurozone
dropped to 51.4, its lowest level in 16 months. After the release,
European stocks tumbled, as did the euro (EURUSD) versus the
dollar.
The data confirms that the eurozone is still in rough shape.
Germany's own November preliminary manufacturing survey came in at
50.0, versus an expected 51.5. Stock futures were also dealing with
weakness in a similar gauge out of China, which showed factory
activity declined in November, after gaining in the prior month.
PMI data out of Japan was also weak.
The dollar(USDJPY) rose against the Japanese yen, pushing past
Yen118.16. The Nikkei 225 index closed flat. Gold (GCZ4) drifted
lower, while oil (CLZ4) rose more than 1% on hopes that the global
cartel of oil exporters will move to tighten the markt.
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