US stocks march higher
US stocks advanced Thursday, Aug. 14, 2014, extending the prior day’s gains after jobless claims increased but overall the data continued to suggest an improving labor market. AP PHOTO/MARK LENNIHAN
NEW YORK–US stocks advanced Thursday, extending the prior day’s gains after jobless claims increased but overall the data continued to suggest an improving labor market.
The Dow Jones Industrial Average added 61.78 points (0.37 percent), closing at 16,713.58.
The broad-based S&P 500 gained 8.46 (0.43 percent) at 1,955.18, while the tech-rich Nasdaq Composite Index rose 18.88 (0.43 percent) to 4,453.00.
Traders shrugged off a larger-than-expected rise in initial claims for unemployment insurance benefits last week that did not alter the still-improving trend in the volatile weekly data.
“While the latest reading on initial claims was higher than expected, the four-week average has risen only slightly from the eight-year low reached last week,” Dean Maki of Barclays Research said in a client note.
“Thus, we still would view the claims data as consistent with a labor market that is improving.”
Investors also appeared to view data showing the eurozone’s second quarter stall as likely to spur the European Central Bank to step in with more stimulus for the 18-nation bloc.
Health stocks were in favor. On the Dow, Pfizer led the blue-chip index higher, gaining 1.8 percent, and Merck added 1.6 percent.
Dow member Wal-Mart rose 0.5 percent despite lowering its 2014 earnings per share forecast to $4.90-$5.15, from the prior estimate of $5.10-5.45, citing investments in e-commerce and higher US health care costs than previously anticipated.
Cisco Systems was the biggest Dow decliner, falling 2.6 percent. The computer networking giant reported a 21 percent fall in fiscal fourth-quarter profit that beat expectations. But its projected adjusted earnings per share of between 51 and 53 cents for the current quarter missed.
Department store chain Kohl’s leaped 3.3 percent after reporting slightly better second-quarter profit and a positive turn for sales in July.
Red Robin Gourmet Burgers served up a big 15 percent drop in fiscal second-quarter profit, saying it was mainly squeezed by higher food and beverage costs. The restaurant chain plunged 18.5 percent.
Shares in US investment star Warren Buffett’s Berkshire Hathaway group topped $200,000 apiece for the first time, less than eight years after breaking the $100,000 barrier.
Berkshire A shares, the priciest equity on the market, surged 1.8 percent to $202,850.00.
Bond prices advanced. The yield on the 10-year US Treasury fell to 2.39 percent from 2.41 percent Wednesday, while the 30-year dropped to 3.19 percent from 3.24 percent. Bond prices and yields move inversely
