US stocks rally despite weak data
In this Wednesday, Feb. 19, 2014, file photo, trader Dudley Devine uses his mobile phone as he works on the floor of the New York Stock Exchange. US stocks rallied Thursday, Feb. 20, as investors shrugged off some disappointing US economic data that was largely chalked up to severe winter weather. AP PHOTO/RICHARD DREW
NEW YORK—US stocks rallied Thursday, as investors shrugged off some disappointing US economic data that was largely chalked up to severe winter weather.
The Dow Jones Industrial Average gained 92.67 points (0.58 percent) at 16,133.23.
The broad-based S&P 500 advanced 11.03 (0.60 percent) to 1,839.78, some eight points shy of its record high in mid-January.
The tech-rich Nasdaq Composite Index added 29.59 (0.70 percent) at 4,267.55.
The markets wavered in early trade before heading north for the rest of the session, despite economic reports that came in weaker than expected.
Unemployment claims fell last week but not as much as anticipated. The Philadelphia Federal Reserve’s manufacturing index for the mid-Atlantic region unexpectedly plunged into negative territory, at -6.3 in February from 9.4 in January.
“Nearly every US economic report released over the past month has been distorted by the brutal winter weather. Temperatures will rise eventually and economic data will normalize but we still have at least another month worth of softer economic data ahead,” said Kathy Lien of BK Asset Management.
Verizon Communications led the Dow higher, surging 3.4 percent, followed by DuPont, up 1.7 percent.
Wal-Mart Stores was the blue-chip laggard, shedding 1.8 percent after fiscal fourth-quarter earnings showed a 0.4 percent fall in sales at US stores.
Wal-Mart’s adjusted earnings of $1.60 per share beat estimates by a penny, but its forecast of the current quarter’s profits was well below Wall Street expectations.
On the merger and acquisition front, Facebook gained 2.3 percent in the wake of its eye-popping $19-billion cash-and-stock deal to buy messaging service WhatsApp, announced late Wednesday.
Messaging rival Twitter rose 2.0 percent and smartphone maker BlackBerry jumped 3.8 percent.
Tesla roared up 8.4 percent after the luxury electric carmaker reported stronger-than-expected quarterly results and forecast a big boost in 2014 sales.
PepsiCo rose 1.2 percent. Activist investor Nelson Peltz reportedly delivered a letter to the company’s board calling for it to separate Pepsi’s global snacks and beverages businesses to increase shareholder value.
Bond prices fell. The yield on the 10-year US Treasury rose to 2.75 percent from 2.73 percent Wednesday, while the 30-year increased to 3.73 percent from 3.71 percent. Bond prices and yields move inversely.
