Stocks Rise on Bank Earnings, Strong Jobs Data
NEW YORK (TheStreet) -- Stock rose Thursday following a substantial dip in jobless claims data and encouraging earnings results from Bank of America
The Dow Jones Industrial Average gained 45 points, or 0.4%, to finish at 12,624. The S&P 500 rose 6.5 points, or 0.5%, to settle at 1,314.50, while the Nasdaq gained 19 points, or 0.7%, to close at 2,788.
Thursday was a busy day for fourth-quarter corporate earnings, with fourth tech titans reporting after the close. Google
Shares of Intel
Intel's revenue came in at $13.9 billion, topping the $13.7 billion expected by analysts. The company's earnings were 68 cents a share, beating the 61 cents expected.
Financial stocks helped buoy the market Thursday. Bank of America
Also helping sentiment was a Labor Department report showing that the number of Americans filing for first-time unemployment benefits fell to the lowest level since April 2008. Initial jobless claims dropped 50,000 to 352,000 from a revised 402,000. Economists expected claims to fall to 383,000.
"One week is not a trend, but this continues a clear downshift in claims, which emerged towards the end of last year when businesses realized that the meltdown in demand they feared, in the wake of the drop in consumers' confidence, had not happened," Ian Shepherdson, chief economist at High Frequency Economics, wrote. "It is just about inconceivable that such a sustained downshift would not be followed quickly by substantially faster payroll gains."
In a sign that inflation is easing, the Bureau of Labor Statistics said that consumer prices stayed put in December. Analysts expected the consumer price index to climb 0.1%, according to estimates from Zacks.com.
Housing starts fell 4.1% to an adjusted annual rate of 657,000 units in December from a revised 680,000 in November, according to a Census Bureau report. Analysts expected housing starts to fall to 675,000 units. Building permits fell 0.1% to 679,000 from a revised 680,000 in the previous month.
The Federal Reserve Bank of Philadelphia also added to promising economic news by reporting that manufacturing in the region expanded at a faster pace this month as employment increased. The regional Fed bank's economic index increased to 7.3 from 6.8 last month, although it missed expectations for a reading of 10, according to Thomson Reuters.
In Europe, France inspired investor confidence after successfully auctioning off 7.965 billion euros of bills. The country held its first longer-term bond auction since the credit rating downgrade by Standard & Poor's last Friday. The rating agency's announcement seemed to have little effect on French bond values as yields fell Thursday. Spain also successfully sold longer-term notes at its first auctions since S&P's downgrade. Spanish yields fell by1.572% on 10-year notes, while inching higher on bonds maturing in 2016.
Germany's DAX closed 0.9% higher while London's FTSE was up 0.5%. Japan's Nikkei Average settled 1% higher and Hong Kong's Hang Seng climbed 1.3%.
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In corporate news, Eastman Kodak
March oil futures fell 19 cents to $100.57 a barrel after the American Petroleum Institute reported late Wednesday that U.S. crude oil inventories unexpectedly dropped last week. February gold futures fell $5.40 to 1654.50 an ounce.
The dollar index was dropping 0.4%. The benchmark 10-year Treasury was falling 23/32, increasing the yield to 1.979%.
-- Written by Chao Deng and Kaitlyn Kiernan in New York.
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