Stocks Shake Off Inflation, Labor Data Losses
Updated from 9:44 a.m. EDT
Following the release of discouraging inflation, housing and employment data, U.S. stocks recovered from a droopy open to log modest gains Thursday.
The
Dow Jones Industrial Average
was adding 27 points to 11,560, and the
S&P 500
climbed 2 points to 1288. The
Nasdaq
jumped 10 points to 2439.
On Wednesday, the major indices spent nearly all day in negative territory, pounded by somewhat discouraging retail sales data and an uptick in crude-oil prices.
Ahead of the new session, several economic data releases served to dampen investor enthusiasm. The Bureau of Labor Statistics' July consumer price index showed a 0.8% increase, down from 1.1% in June but much higher than economists' expectations for a 0.4% bump in prices. Year over year, prices rose 5.6%, the largest such increase since January 1991. The core inflation rate came in at 0.2%, less than 0.3% in June and in line with consensus estimates.
Real estate data compiler RealtyTrac also said that foreclosures in the U.S. rose 55% year over year to 272,000 homes in July. It also reported that more than 77,000 homes were repossessed in the same period.
Offering further selling pressure, the Department of Labor's initial jobless claims for the week ended August 9 came it at 450,000, a higher unemployment reading than forecast by analysts. The figure for the previous week was revised upward to 460,000 from 455,000.
Before the data release, traders had shown optimism on Wal-Mart's report of second-quarter earnings that beat estimates and raised its full-year profit outlook.
Leading the comeback was a bounce financial firms
Fannie Mae
TheStreet Recommends
undefined
,
Freddie Mac
undefined
,
Bank of America
(BAC) - Get Bank of America Corp Report
and
Wachovia
.
Meanwhile,
InBev
the Belgian brewer slated to buy
Anheuser-Busch
(BUD) - Get Anheuser-Busch InBev SA/NV Report
, reported improved earnings and said it expected to increase its profit margins for the remainder of the year.
Garment vendor
Urban Outfitters
(URBN) - Get Urban Outfitters, Inc. Report
also announced growth in second-quarter profits and said same-store sales were swinging upward.
As for commodities, the price of crude oil was climbing 28 cents to $116.28 a barrel, and gold was shedding $5.70 to $825.80 an ounce.
U.S. Treasury securities were climbing. The 10-year note was adding 8/32 to yield 3.9%, and the 30-year was tacking on 20/32, yielding 4.52%. The dollar was adding value against the euro and pound, but falling vs. the yen.
Across the seas, foreign markets were mixed. In Europe, London's FTSE was climbing, while Frankfurt's DAX took a tumble. In Asia, the Japan's Nikkei was slipping and the Hong Kong Hang Seng was strengthening.
