Stocks Edge Lower In Early Trading
By STEVE ROTHWELL
NEW YORK (AP) â¿¿ The stock market pulled back from record levels Thursday as investors became harder to please.
Even a decline in the number of Americans applying for unemployment benefits failed to give stock prices a boost. Markets drifted lower in early trading, moved between gains and losses in the afternoon, then ended slightly lower. The Standard & Poor's 500 index had its first loss since May 1.
Unemployment claims dropped to a five-year low last week, the Labor department reported early Thursday. That signals fewer layoffs and possibly more hiring.While the report failed to boost stocks, it did give the dollar a lift. The U.S. currency climbed against most major currencies and traded above 100 yen for the first time in more than four years. The Japanese currency has weakened dramatically this year due to the Bank of Japan's massive monetary stimulus. An improvement in hiring at U.S. employers has been one of the key factors that pushed stocks up to record levels. The Dow Jones industrial average climbed above 15,000 for the first time Tuesday and is on track to notch six straight months of gains. The S&P 500 index also closed at a record high Wednesday. 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," Kinahan said. Rising corporate earnings, another key support for the stock market, were also in focus on Thursday. â¿¿ Tesla Motors soared $13.61, or 24 percent, to $69.40, after the electric car maker posted its first quarterly net profit since it was founded a decade ago. â¿¿ Green Mountain Coffee Roasters surged $16.56, or 27.8 percent, to $76.04 after the company reported late Wednesday that its net income rose 42 percent. It also raised its earnings forecast for the full year.
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