By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks on Thursday recovered most
earlier losses as investors shrugged off disappointing housing,
manufacturing and employment reports, sending the Dow Jones
Industrial Average to a record closing.
The Dow average (DJI) closed at its 46th record of the year,
adding 11.11 points, or 0.1% to 16,179.08. It also hit an intraday
record of 16,194.72. The S&P 500 index (SPX) briefly ventured
into positive territory but closed 1.05 point off its record close
level at 1,809.60. The Nasdaq Composite (RIXF) closed lower,
shedding 11.93 points, or 0.3%, to 4,058.13.
Weekly jobless claims rose to their highest level since late
March, though the increase was likely due to seasonal ups and
downs. Existing-home sales for November slumped 4.3%, a third month
of declines, to a seasonally adjusted annual rate of 4.9 million,
on higher mortgage rates and low inventory. The Philadelphia Fed's
December manufacturing index rose to 7, but below the consensus
view of 11. Leading indicators index for November rose to 98.3,
showing modest expansion in the economy.
The S&P 500 closed at a high on Wednesday as investors took
the view that a Fed tapering meant confidence in the economy and
welcomed the central bank's commitment to low rates until the
unemployment rate declines well below 6.5%, especially if projected
inflation remains below the 2% target.
"This positive forward guidance on short-term interest rates
appears to have offset any near-term concerns about tapering," Gary
Thayer, chief macro strategist at Wells Fargo Advisors, wrote in a
note.
"This was probably an intentional decision by policymakers to
smooth out the market impact of tapering," he added.
In corporate news:
* Facebook trimmed earlier losses and closed 0.9% lower after
the social network said it plans a public offering of 70 million
Class A shares, with 27 million from Facebook itself and the rest
from major shareholders, with co-founder Mark Zuckerberg putting up
the majority.
* Oracle rose 5.8% after the tech company's quarterly results
beat Wall Street forecasts late Wednesday.
* Darden Restaurants Inc. was down 3.6% after the restaurant
chain company missed analysts' expectations. The firm also said it
expects to spin off its struggling Red Lobster chain after facing
pressure from shareholders.
* ConAgra Foods Inc. jumped 5.3% after reaffirming its full-year
outlook and posting a fiscal second-quarter profit and sales
gain.
* Rite Aid Corp. shares fell 10% after the company cut its
per-share estimate for the fiscal year. It said fiscal
third-quarter earnings rose 16%.
* Shares of Target Corp. fell 2.2% after the company was hit by
an extensive credit-card breach over the Black Friday shopping
weekend.
* Accenture shares climbed 5.1% after the management consulting
firm said it earned $1.15 per share in the fiscal first quarter, up
from $1.06 in the same quarter a year ago. That earnings growth
came from higher revenue and growth in new bookings.
In other markets:
* Gold futures Gold futures marked their lowest settlement in
more than three years on Thursday as the Federal Reserve's January
tapering plans and a rally in the U.S. dollar sank prices below
$1,200 an ounce. March silver was hit even harder Thursday, down 87
cents, or 4.4%, to $19.19 an ounce.
* European markets sailed higher, while Japan stocks soared to
seven-month highs.
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