By Chris Dieterich
NEW YORK--Stocks clung to gains in late-session trading after a
better-than-forecast reading from the labor market.
The Dow Jones Industrial Average rose 29 points, or 0.2%, to
14706. The S&P 500 added seven points, or 0.5%, to 1586 in
afternoon trading. A gain for the index would mark its fifth rise
in a row. The Nasdaq Composite Index gained 25 points, or 0.8%, to
3295.
The stock market gained even as the Chicago Board Options
Exchange delayed trading for most of the session due to a technical
glitch. Trading resumed just before 1:00 p.m. EDT. Shares of CBOE
Holdings Inc. (CBOE) rose.
Cliffs Natural Resources Inc. (CLF), the largest North American
iron-ore producer, reported a smaller-than-expected decline in
first-quarter earnings.
3M Co. (MMM) slid after it reported quarterly results that
lagged analysts' forecasts and trimmed its earnings forecast for
the year.
Exxon Mobil Corp. (XOM) eased after reporting a quarterly profit
that topped analysts' views but revenue that missed
expectations.
Helping to boost enthusiasm for stocks was a report that
Americans applying for jobless benefits fell to 339,000 last week,
lower than expected, and the second-lowest level since January
2008, according to the Labor Department.
Investors also said rising expectations the European Central
Bank might look to cut interest rates helped support stocks.
Goldman Sachs said in a report that it expects the ECB to cut
interest rates in May.
"The strength [in stocks] is part due to expectations about what
we are seeing in terms of economic data, and hopes for a bit of ECB
easing that is pushing things higher right now," said Brian
Jacobsen, chief portfolio strategist at Wells Fargo Funds
Management.
"The fact that we haven't seen a major rollover in sales and
earnings is providing the fundamental supports, but there's been a
change in sentiment that the ECB might follow in the Federal
Reserve and Bank of Japan and engage in more easing," he said.
European stocks advanced, with the Stoxx Europe 600 adding 0.8%.
U.K. economic growth rose by a better-than-expected 0.3% in the
first three months of the year, meaning Britain avoided slipping
into its third recession in recent years.
Asian stocks ended mostly higher, led by a 1% gain in Hong
Kong's Hang Seng Index. Japan's Nikkei Stock Average added 0.6%.
The Shanghai Composite Index fell 0.9%.
Crude-oil futures rose 2.4% to $93.64. Gold futures climbed 2.7%
to settle at $1,461.80. The dollar rose against the euro but fell
versus the yen.
Akamai Technologies Inc. (AKAM), which runs a network of servers
and other equipment that speed delivery of web content, rallied
after reporting first-quarter results that topped its forecast and
gave an upbeat outlook.
Intuit Inc. (INTU), the maker of TurboTax do-it-yourself tax
software and QuickBooks small-business accounting software, tumbled
after reducing its forecasts for earnings and revenue.
Industrial landlord Prologis Inc. (PLD) slipped. Its offering of
at least 31 million shares priced at a 2.5% discount to its
Wednesday close. Prologis is seeking to raise money to repay debt
and for potential acquisitions.
Shares of Zynga Inc. (ZNGA) dropped 6.5% after the social-games
company swung to a profit but offered a weak forecast.
Write to Chris Dieterich at
christopher.dieterich@dowjones.com