By Victor Reklaitis, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks alternated between small
gains and losses on Thursday, as traders weighed downbeat reports
from the Philly Fed, China and Europe against an encouraging
reading on U.S. manufacturing and other new data.
The S&P 500 index (SPX) was last up 3 points, or 0.2%, to
1,832, while the Dow Jones Industrial Average (DJI) gained 35
points, or 0.2%, to 16,076. The Nasdaq Composite (RIXF) tacked on 6
points, also 0.2%, to 4,244.
The main indexes edged up at the open, then turned slightly
negative before creeping back into positive territory.
The Philadelphia Federal Reserve's manufacturing index dropped
sharply to a reading of negative 6.3 in February from a 9.4 reading
in January, well below a MarketWatch-compiled economist forecast of
7.3.
On the upside, Markit's U.S. flash purchasing managers index
jumped to its highest level in almost four years, rising to 56.7 in
February.
In other U.S. economic news, the number of people who applied
for unemployment benefits last week edged down by 3,000 to 336,000,
indicating little change in the U.S. labor market and about in line
with expectations. In addition, U.S. consumer prices rose a
seasonally adjusted 0.1% in January, matching forecasts.
In China, a key gauge showed a larger-than-expected contraction
for manufacturing in the world's No. 2 economy. The HSBC/Markit
preliminary version of its monthly manufacturing PMI index fell to
48.3, which missed a forecast of analysts polled by Bloomberg News
for the index to stay at January's 49.5.
In Europe, Markit data showed business activity in the euro zone
lost momentum in February, owing to weakness in France, the
region's second largest economy. The monthly gauge of activity
across the manufacturing and services sectors of the 18-nation euro
zone fell to 52.7 in February from 52.9 the previous month.
On Wednesday, stocks closed lower after Fed minutes showed no
real consensus about when short-term rates would begin to rise.
Stocks also had their best week so far this year last week, and
technical analysts say the S&P 500 could be hitting some
resistance as it nears its Jan. 15 record close.
"The S&P couldn't get the power to break above all-time
highs yesterday and reversed pretty hard," said Scott Redler, chief
strategist at T3 Live and T3 Trading Group, in a note on Thursday.
That type of action suggests traders should "reduce some risk," he
added.
Among individual stocks, Facebook Inc. (FB) fell 1.5% a day
after the company stunned Wall Street with a deal to buy
Internet-based mobile texting app WhatsApp. There was some
speculation that maybe the company paid too much.
Wal-Mart (WMT) shares lost 2% after the Dow component delivered
a weaker-than-expected forecast for its recently started fiscal
year and current quarter.
Tesla Motors Inc. (TSLA) shares rose 9% after the electric-car
company swung to an adjusted profit in the fourth quarter.
Safeway Inc. (SWY) was up 4% after it said it's holding talks on
the possible sale of the company, though no deal has yet been
reached.
Shares of PepsiCo Inc.(PEP) were up 1.7% after The Wall Street
Journal reported that Nelson Peltz's Trian Fund Management LP is
renewing an effort to break up the company.
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