Please update your Flash Player to view content.
Stock market manages slight gain after choppy day
Written by The Associated Press   
Friday, 16 May 2014 18:59
NEW YORK (AP) — Better results from retailers and demand for telecommunications shares helped push the stock market to a small gain on Friday.
Telecoms rose the most among the 10 industries in the Standard & Poor’s 500 index. Their jump followed news that Warren Buffett’s Berkshire Hathaway made a new investment in Verizon Communications. Other big-name investors, including John Paulson, also reportedly took stakes. Verizon climbed $1.11, or 2 percent, to $49.07.
Major indexes spent much of the day meandering around the breakeven mark. Stocks started higher at the open but reversed course after a report on consumer confidence showed a drop last month. The market took a sudden turn up in the last hour of trading, turning minor losses into minor gains.
“We’ve had a lot of starts and stops recently,” said Dan Cook, a director at Nadex, an exchange in Chicago. “We’re at high levels, so it’s a time to be cautious.”
The S&P 500 index gained 7.01 points, or 0.4 percent, to close at 1,877.86.
The Dow Jones industrial average rose 44.50 points, or 0.3 percent, to end at 16,491.31. The Nasdaq composite index rose 21.30 points, or 0.5 percent, to finish at 4,090.59.
Investors said the choppy trading reflects a larger uncertainty. The stock market is trading near record highs, but investors see little reason for excitement. Earlier in the week, the S&P 500 index notched all-time highs two days in a row. On Thursday, mixed economic news and a weak earnings report from Wal-Mart Stores drove the market to its worst day in more than a month.
Jim Paulsen, chief investment strategist at Wells Capital Management in Minneapolis, said traders who hunt for patterns in the market’s moves have spotted some warning signs worth noting. For instance, the yield on the 10-year Treasury note recently dropped to its lowest point this year. That’s usually a sign of an economic slowdown.
“But most of the economic reports are coming in better than people thought,” Paulsen said. “If you only paid attention to the bond market over the past few years, you’d think the world was going to end. Not the stock market. Which one was right?”
Before the market opened Friday, the government reported that builders started work on more houses in April, as U.S. construction surged to its highest pace in six months. Nearly all of that increase, however, came from new apartment buildings, a sign that Americans are still struggling to buy single-family homes.
Nordstrom surged $9.06, or 15 percent, to $70.55, the biggest gain in the S&P 500. The department store chain reported higher quarterly profits than analysts had expected late Thursday, as better sales at its discount Rack stores boosted results.
J.C. Penney surged $1.36, or 16 percent, to $9.73. Rising sales helped the retailer turn in better results than analysts expected late Thursday. Sales at stores open at least a year — a key gauge of a chain’s health — increased more than 6 percent in its first quarter.
NEW YORK — Better results from retailers and demand for telecommunications shares helped push the stock market to a small gain on Friday.
Telecoms rose the most among the 10 industries in the Standard & Poor’s 500 index. Their jump followed news that Warren Buffett’s Berkshire Hathaway made a new investment in Verizon Communications. Other big-name investors, including John Paulson, also reportedly took stakes. Verizon climbed $1.11, or 2 percent, to $49.07.
Major indexes spent much of the day meandering around the breakeven mark. Stocks started higher at the open but reversed course after a report on consumer confidence showed a drop last month. The market took a sudden turn up in the last hour of trading, turning minor losses into minor gains.
“We’ve had a lot of starts and stops recently,” said Dan Cook, a director at Nadex, an exchange in Chicago. “We’re at high levels, so it’s a time to be cautious.”
The S&P 500 index gained 7.01 points, or 0.4 percent, to close at 1,877.86.
The Dow Jones industrial average rose 44.50 points, or 0.3 percent, to end at 16,491.31. The Nasdaq composite index rose 21.30 points, or 0.5 percent, to finish at 4,090.59.
Investors said the choppy trading reflects a larger uncertainty. The stock market is trading near record highs, but investors see little reason for excitement. Earlier in the week, the S&P 500 index notched all-time highs two days in a row. On Thursday, mixed economic news and a weak earnings report from Wal-Mart Stores drove the market to its worst day in more than a month.
Jim Paulsen, chief investment strategist at Wells Capital Management in Minneapolis, said traders who hunt for patterns in the market’s moves have spotted some warning signs worth noting. For instance, the yield on the 10-year Treasury note recently dropped to its lowest point this year. That’s usually a sign of an economic slowdown.
“But most of the economic reports are coming in better than people thought,” Paulsen said. “If you only paid attention to the bond market over the past few years, you’d think the world was going to end. Not the stock market. Which one was right?”
Before the market opened Friday, the government reported that builders started work on more houses in April, as U.S. construction surged to its highest pace in six months. Nearly all of that increase, however, came from new apartment buildings, a sign that Americans are still struggling to buy single-family homes.
Nordstrom surged $9.06, or 15 percent, to $70.55, the biggest gain in the S&P 500. The department store chain reported higher quarterly profits than analysts had expected late Thursday, as better sales at its discount Rack stores boosted results.
J.C. Penney surged $1.36, or 16 percent, to $9.73. Rising sales helped the retailer turn in better results than analysts expected late Thursday. Sales at stores open at least a year — a key gauge of a chain’s health — increased more than 6 percent in its first quarter.
 

Latest Local News

Perrysburg approves levy proposal
07/21/2014 | Alex Aspacher

PERRYSBURG — The decision whether to build a new school will rest with voters in November, with th [ ... ]


Other Local Articles

Latest Sports News

Manziel scores as NFL’s top-selling jersey
07/22/2014 | TOM WITHERS, AP Sports Writer

CLEVELAND (AP) — Second on Cleveland’s depth chart, Johnny Manziel already tops one NFL list.
The [ ... ]


Other Sports Articles

Latest Obituaries

Betty Frees
07/21/2014

Betty Frees, 77, of Bowling Green, passed away Saturday (July 19, 2014).
Arrangements are pending with Deck-Hanneman Funeral Home & Crema [ ... ]


Other Obituaries

Latest Letters To The Editor

To the Editor: Lake board unwise to pan Common Core
07/16/2014 | Jeff Murray

I write in response to the June 26 story "Common Core is panned at Lake."
While the Lake Local School [ ... ]


Other Letters To the Editor

Latest Photo Galleries

Northwest Ohio All-Star Football July 18th 2014

Northwest Ohio All-Star Football July 18th 2014 | Photos: Enoch Wu/Sentinel-Tribune
gallery/2014/ [ ... ]


Other Photo Galleries

Volunteer-Billboard

Latest AP News

Afghan vet who fought wounded gets Medal of Honor
07/22/2014 | By JOSH LEDERMAN Associated Press

WASHINGTON (AP) — Bleeding from both legs and his arm, Ryan Pitts kept firing at about 200 Taliban [ ... ]


Other AP Articles

Latest Arts & Entertainment

Toledo exhibit shows the anguish of WWI
07/19/2014

TOLEDO - In her series of woodcut prints called War (Krieg), German artist K√§the Kollwitz portra [ ... ]


Other A&E Articles

Latest Community Stories

Forum to focus on Farm Bill implementation
07/19/2014 | Sentinel-Tribune Staff

Farmers around Ohio will soon be faced with several choices concerning the national safety net for a [ ... ]


Other Community Articles

Latest Cook's Corner

Got an apple pie craving?
07/15/2014
article thumbnail

Lily Parker-McLaughlin, 11, with her "Apple Pie Yogurt in a Mug" recipe. (Photo: J.D. Po [ ... ]


Other Cook's Corner

Latest Odd News

Another tiny Wyoming town goes up for sale
07/21/2014

ALADDIN, Wyo. (AP) — Here’s a gift for someone who has everything: A tiny town in far northeaste [ ... ]


Other Odd News
facebook
Sentinel-Tribune Copyright 2010