By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks reversed post-Fed losses
and finished Thursday with modest gains. Upbeat data from
Philadelphia Fed, showing a rebound in manufacturing in March,
boosted confidence.
Manufacturing data, along with the leading indicators report,
suggested that the slowdown during the unusually cold and snowy
winter was short-lived.
The S&P 500 index (SPX) ended the day 11.25 points, or 0.6%,
higher at 1,872.01. The Dow Jones Industrial Average (DJI) gained
108.88 points, or 0.7%, to 16,331.05.
The Nasdaq Composite (RIXF) finished the day 11.68 points, or
0.3%, higher at 4,319.29.
Read the recap of our live stock market coverage.
The Philadelphia Fed's manufacturing index rebounded in March to
a reading well above forecasts, while the Conference Board's
leading economic index rose in February, suggesting that the
dampening impact of severe winter weather will not be
long-lasting.
However, rising mortgage rate and prices, and possibly harsh
winter weather, hurt the housing market. Sales of existing homes
declined in February to the slowest annual pace since July 2012,
the National Association of Realtors reported Thursday.
Earlier, a Labor Department report showed a smaller increase in
weekly unemployment benefit applications than expected, with the
four-week average at the lowest level since the end of
November.
Markets fell on Wednesday after Federal Reserve Chairwoman Janet
Yellen said rate hikes could happen about six months after the
central bank ends its bond purchases. At the current pace of
tapering, this timeline indicates a rate increase as early as
spring 2015.
Brad McMillan, chief investment officer at Commonwealth
Financial Network, said that good news about the economy and the
Fed's outlook outweighed fears of higher rates.
In a researched note, he wrote: ". there is a widespread
impression that rising rates are bad for the market, that is not
true. Rising rates below around 5% typically result in a rising
stock market, not a falling one."
Burlington Stores, Guess report earnings
Burlington Stores Inc. (BURL) advanced 16% after the clothing
retailer reported adjusted earnings per share ahead of
expectations.
Scholastic Corp. (SCHL) dropped 2% even as the publishing,
education and media company said its fiscal third-quarter loss
narrowed thanks to a favorable settlement of federal tax
audits.
Guess Inc. (GES) slid 3.4% after the fashion retailer's outlook
fell short of Wall Street estimates. The company reported its
fourth-quarter earnings on Wednesday after the market close.
Shares of Walter Energy (WLT) tumbled 20% after the company
doubled the size of its 5-year, 9.5% senior secured note sale to
$200 million along with the sale of $350 million in second-lien PIK
toggle notes due in 2020, according to Dow Jones. Standard &
Poor's Ratings Services on Wednesday said it maintained its B-
corporate credit rating on Walter and said it has a negative
outlook.
ExOne Co. (XONE) shares skidded 10% after the 3-D printer maker
said it swung to a fourth-quarter loss. The firm's full-year
outlook also disappointed investors.
Cliffs Natural Resources Inc. (CLF) shares dropped 2% after
analysts at Bank of America Merrill Lynch cut the stock's price
target to $16 from $20, according Analyst Ratings Network.
Nike Inc. (NKE)shares rose nearly 2% in aftermarket trade after
the company's quarterly results topped estimates.
Elsewhere, Asian markets were bruised by the rate-hike signal,
but European markets recovered losses after upbeat economic data in
the U.S. Most commodities, including oil and gold, moved lower.
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