The Herald Bulletin

Morning Update

Breaking News

May 2, 2013

Stocks gain after unemployment claims fall

NEW YORK — Encouraging news about the job market and higher profits from CBS, Facebook and other companies gave stocks a lift Thursday.

Signs that hiring is picking up has been an important factor supporting this year's rally in stocks that has pushed the Dow Jones industrial average and the Standard & Poor's 500 index to record highs. The rally has started to falter in recent weeks on signs that the global economy is slowing.

The Dow rose 121 points to 14,822 as of noon Eastern, an increase of 0.8 percent. It lost 138 points the day before, its worst drop in two weeks. The S&P 500 index climbed 14 points, or 0.9 percent, to 1,597.

The Labor Department reported that applications for unemployment benefits fell last week to the lowest since January 2008. That suggests layoffs are easing. It's a positive sign ahead of the government's closely watched monthly employment report due out on Friday. Stocks fell April 5 after the government reported that hiring in March was the weakest in nine months.

"Everyone is looking to the April jobs numbers," said Tyler Vernon, chief investment officer at Biltmore Capital. "People are more confident that it was an anomaly last month and are looking for some bigger numbers."

Economists forecast that the economy added 160,000 jobs last month. That's much better than the 88,000 added in March, but below last year's pace of nearly 185,000 per month.

Investors were also watching earnings on Thursday.

General Motors rose $1.31, or 4.3 percent, to $31.50 after reporting earnings that exceeded analysts' expectations as its losses in Europe narrowed. The automaker's earnings of 67 cents a share beat the 54 cents predicted by Wall Street analysts that follow the company. Broadcaster CBS reported a 22 percent jump in first-quarter earnings big events like the Super Bowl pushed advertising revenue higher. Its stock rose $1.34, or 3 percent, to $47.75.

Facebook rose 83 cents, or 3 percent, to $28.20 after it said late Wednesday that revenues rose about 38 percent, surpassing Wall Street expectations. The company earned nearly a third of its advertising revenue from mobile devices, a greater share than most than analysts were expecting.

The social networking site bucked the trend for companies reporting in the first quarter. Most corporations are exceeding analysts' expectations on earnings, but falling short on revenues.

About 70 percent of companies in the S&P 500 index have reported earnings for the first quarter. Of those corporations, seven of 10 have beaten analyst's expectations for earnings, but about six of 10 have fallen short for expectations on revenues.

"If we continue to see several more quarters like this, investors would start to get nervous," said Andrew Milligan, head of global strategy at Standard Life investment. He says that growth needs to pick up in the major export markets, like China and Europe, for U.S. companies to maintain their earnings growth.

Earnings at companies in the S&P 500 are at record levels. They are forecast to rise by 4.4 percent in the first quarter, according to S&P Capital IQ data.

Stocks are rebounding after a slump Wednesday prompted by reports that manufacturing growth and hiring were slowing.

In other trading, the Nasdaq composite index rose 37 points, or 0.5 percent, to 3,315 points.

In government bond trading, the yield on the 10-year note rose to 1.64 percent after falling to a low for the year of 1.63 percent Wednesday.

The price of crude oil rose $1.74 to $92.78 a barrel, up 1.9 percent. The price of gold rose $23.90, or 1.7 percent, to $1.470.30 an ounce. The U.S. dollar gained against the euro after the European Central bank cuts its benchmark interest rate a quarter of a percentage point to 0.5 percent. The euro fell a penny against the dollar to $1.3057.

 

1
Text Only
Breaking News
  • SPT - HB0726 - Thomas - Colts Camp day two 252 Reports: Colts OL Thomas out for season again Several media outlets are reporting Indianapolis Colts left guard Donald Thomas again has torn his right quad and will miss the 2014 season.

    July 31, 2014 1 Photo

  • NWS - HB0706 - scooter - 04 Police say new mo-ped law hard to enforce KOKOMO — With more and more mo-peds hitting the streets, police are having a hard time enforcing new restrictions encompassed in the new scooter law.Mo-ped drivers can still cruise the streets and roads on their two-wheel machines, but the new state

    July 31, 2014 1 Photo

  • Venue change granted for blast suspect A judge granted a change of venue Wednesday for the trial of one defendant in a deadly Indianapolis house explosion after prosecutors dropped their objection.

    July 31, 2014

  • Boyfriend of missing Shelbyville woman arrested Authorities searching for a missing central Indiana woman have discovered what they believe to be human remains and have arrested the woman's boyfriend.

    July 30, 2014

  • Pence pushes Medicaid alternative with HHS chief Gov. Mike Pence has told U.S. Health and Human Services Secretary Sylvia Burwell that he wants to maintain Indiana's "freedom and flexibility" under any expansion of Medicaid.

    July 30, 2014

  • Indianapolis mayor backs tax to hire more officers

    Indianapolis Mayor Greg Ballard is seeking a tax increase to pay for hiring more police officers as part of a wide-ranging response to the city's recent surge in deadly violence.

    July 30, 2014

  • Colts Camp update: Will injured players return?

    Cornerback Vontae Davis and safety LaRon Landry have yet to participate in a training camp practice, and running back Trent Richardson has missed four straight after running through drills on opening day. Indianapolis Colts head coach Chuck Pagano doesn't want to rush any of those players back onto the field. But he made it clear Wednesday morning at Anderson University that he hopes to see them back soon.

    July 30, 2014

  • Ticket me Elmo? NYC mulls law for impersonators

     New York City officials are turning up the heat on Elmo, Cookie Monster and Statue of Liberty impersonators — Times Square costumed characters who often demand money for posing in photos with tourists.

    July 30, 2014

  • US economy grew at strong 4 percent rate in spring

    After a dismal winter, the U.S. economy sprang back to life in the April-June quarter, growing at a fast 4 percent annual rate on the strength of higher consumer and business spending.

    July 30, 2014

  • Pence wants immigrant children taken out of state

    Gov. Mike Pence is asking that more than 200 immigrant children placed in Indiana be deported and chiding President Barack Obama for not alerting him of the placements.

    July 30, 2014

Featured Ads
More Resources from The Herald Bulletin
AP Video
Fighting Blocks Access to Ukraine Crash Site Dangerous Bacteria Kills One in Florida Workers Dig for Survivors After India Landslide Texas Scientists Study Ebola Virus Smartphone Powered Paper Plane Debuts at Airshow Southern Accent Reduction Class Cancelled in TN Raw: Deadly Landslide Hits Indian Village Obama Chides House GOP for Pursuing Lawsuit New Bill Aims to Curb Sexual Assault on Campus Russia Counts Cost of New US, EU Sanctions 3Doodler Bring 3-D Printing to Your Hand Six PA Cops Indicted for Robbing Drug Dealers Britain Testing Driverless Cars on Roadways Raw: Thousands Flocking to German Crop Circle At Least 20 Chikungunya Cases in New Jersey Raw: Obama Eats Ribs in Kansas City In Virginia, the Rise of a New Space Coast Raw: Otters Enjoy Water Slides at Japan Zoo NCAA Settles Head-injury Suit, Will Change Rules Raw: Amphibious Landing Practice in Hawaii
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
Helium debate
Helium
Front page
Poll

Do you think school is starting too early?

Yes, it shouldn't start until after Labor Day.
Yes, it shouldn't start for another week or so.
No, it's about right.
Not sure.
     View Results