This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Stocks Gain Despite Disappointing Home Sales and Poor GDP

NEW YORK ( TheStreet) -- U.S. stocks rose Thursday afternoon despite disappointing home sales. Jobless claims fell more than expected, while investors overlooked a poor result for first-quarter GDP.


WATCH: More market update videos on TheStreet TV | More videos from Jane Searle

  • The Dow Jones Industrial Average gained 0.39% to 16,698.68, while the Nasdaq was up 0.54% to 4,247.95. The S&P 500 added 0.54% to 1,920.03.
  • Contracts to buy previously owned homes rose 0.4% in April after a 3.4% gain in March, the National Association of Realtors said. Expectations were for a 1% rise.
  • Gross domestic product fell at a seasonally adjusted annual rate of 1% in the first quarter, the Commerce Department said Thursday. It is the first time economic output has contracted since the first quarter of 2011.
  • "It is already self-evident that much of the first quarter growth was pushed forward to the second quarter, which is likely to be gangbusters with some estimates as high as 5%," Voya Global Perspectives chief market strategist Douglas Cote told clients. 
  • Individuals filing for jobless benefits in the week ended May 24 fell by 27,000 to 300,000 from the previous week's 327,000, the U.S. Department of Labor said. Expectations were for jobless claims to fall to 317,000. 
  • International markets were mixed with the FTSE 100 closing up 0.29% and the DAX flat. The Nikkei 225 edged 0.07% higher, and the Hong Kong Hang Seng dropped 0.3%.
  • Meat producer Hillshire Brands  (HSH) leapt 17.6% after Tyson (TSN) bid $50 a share in cash for the company.
  • Apple (AAPL - Get Report) has agreed to acquire Beats Electronics for $3 billion, $2.6 billion in cash and the remainder in equity which will vest over time. Shares of Apple climbed 1.8%.
  • Membership-only retailer Costco (COST) reported a 3.1% increase in third-quarter profit to $473 million, or $1.07 a share, but fell shy of analysts' estimates by 2 cents, according to Thomson Reuters. Though Costco fared moderately well in a quarter which brought some of the best retailers to their knees, shares were off 0.05%.
  • Shares of Abercrombie & Fitch (ANF) added more than 5.5% after the teen retailer managed to stem losses in its first quarter. Net losses of $13 million, or 17 cents a share, were narrower than analysts' forecasts for losses of $13.4 million, or 19 cents a share. Total sales slipped 2% to $822 million, higher than an anticipated $798 million.
  • Palo Alto Networks (PANW) shares were up 5.1% after the company reported third-quarter profit of 11 cents a share, a penny over estimates. Separately, the company said it had settled patent litigation with Juniper Networks (JNPR), agreeing to pay a one-time penalty of $175 million. Avago Technologies (AVGO), Lions Gate (LGF) and Veeva Systems (VEEV) will be on watch after the bell following their respective earnings reports.
 -- By Jane Searle and Joe Deaux in New York.

>>Read More:

Apple Acquires Beats for $3B

Look at May Auto Sales - No Wonder the Stock Market Is Up





Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
HSH $62.96 0.00%
AAPL $128.54 0.00%
FB $80.90 0.00%
GOOG $573.37 0.00%
TSLA $202.44 0.00%

Markets

DOW 18,096.90 -106.47 -0.58%
S&P 500 2,098.53 -9.25 -0.44%
NASDAQ 4,967.1410 -12.76 -0.26%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs