Loading…
Monday, July 28, 2014
Current Weather
Loading Current Weather....
Published: Thursday, 5/9/2013

Stocks edge lower on Wall Street

Drop in unemployment claims fails to boost the market

ASSOCIATED PRESS

NEW YORK —Stocks edged lower on Wall Street today as a powerful market advance slows down.

The Dow Jones industrial average fell 22 points to close at 15,082, a decline of 0.2 percent. The Dow had closed above 15,000 for the first time on Tuesday.

The Standard & Poor’s 500 index lost six points to end at 1,626, a fall of 0.4 percent. It was the first loss for the S&P since May 1.

The Nasdaq composite index was off four points at 3,409, or 0.1 percent.

Tesla Motors soared 24 percent after the electric car maker posted its first quarterly net profit since it was founded a decade ago.

Two stocks fell for every one that rose on the New York Stock Exchange. Volume was lower than average at 3.3 billion shares.

RELATED ARTICLE: Jobless aid filings fall to 5-year low

The bar for economic news and corporate earnings has risen as stock prices have marched higher, said JJ Kinahan, chief derivative strategist at TD Ameritrade. “You have to beat by a lot to really move the market higher.”

Rising corporate earnings, another support for the stock market, were also in focus today.

Tesla Motors soared $14.73, or 26 percent, to $70.34, after the electric car maker posted its first quarterly net profit since it was founded a decade ago. Green Mountain Coffee Roasters surged $14.42 or 24.5 percent, to $74.06 after the company reported late Wednesday that its net income rose 42 percent. It also raised its earnings forecast for the full year.

Monster Beverage, the maker of energy drinks, fell $3.63, or 6.4 percent, to $53.31, after it reported net income that fell short of analysts’ estimates. The company’s profits fell 17 percent, despite stronger sales, because of unfavorable currency rates, legal expenses and costs tied to distribution agreements.

Almost 90 percent of the companies in the S&P 500 index have reported earnings for the first quarter. Earnings are projected to rise 5 percent for the period and continue climbing throughout the year, according to S&P Capital IQ.

The Dow rose 19 points, or 0.1 percent, to 15,123 as of 2:20 p.m. Eastern Daylight Time. The Standard & Poor’s 500 index was little changed at 1,633.

So far, markets have defied expectations for a slowdown heading into the summer.

The Standard & Poor’s 500 index has started the second quarter well, gaining 1.9 percent so far in the period. But the index has declined in the second quarter in each of the past three years. Stocks slumped as Europe’s debt crisis intensified last year and in 2011 they dipped as wrangling in Washington pushed the U.S. to the brink of default.

“The market has had a phenomenal run,” said Ron Florance, managing director of investment strategy at Wells Fargo Private Bank. “We’ll have to see how the second quarter plays out.”

In government bond trading, the yield on the 10-year note continued to edge higher, climbing to 1.81 percent from 1.77 percent on Wednesday. The yield, which moves inversely to the bond’s price, has risen from 1.63 early Friday before a surprisingly strong employment report.

The price of crude oil fell 59 cents, or 0.6 percent, $96.09 and gold fell $10.90, or 0.7 percent, to $1,463.40. The dollar rose against the euro and the yen. The U.S. currency traded above the 100 yen level for the first time in more than four years.

In other stock trading, the Nasdaq composite index, which is heavily weighted with technology stocks, was up one point at 3,414.

Barnes & Noble surged $2.89, or 16 percent, to $20.69 after TechCrunch reported that Microsoft was considering acquiring the book retailer’s digital book venture Nook Media for $1 billion.



Guidelines: Please keep your comments smart and civil. Don't attack other readers personally, and keep your language decent. If a comment violates these standards or our privacy statement or visitor's agreement, click the "X" in the upper right corner of the comment box to report abuse. To post comments, you must be a Facebook member. To find out more, please visit the FAQ.

Related stories