Stocks keep positive tone
Wall Street ended a winning, holiday-shortened week with a quiet advance Thursday as investors awaited the release of March employment figures and remained cautiously optimistic after their recent buying streak. For the week, the major indexes gained each day.
There was a subdued tone to trading Thursday as investors adjusted portfolios before a three-day weekend; the stock market is closed today for Good Friday. Investors were particularly careful because they knew they wouldn’t be able to trade on today’s Labor Department report on employment until Monday.
There was little reaction to the department’s announcement Thursday that first-time claims for unemployment benefits rose to their highest weekly level since March 3, which indicated companies might be struggling to cope with sluggish growth in the national economy.
Thursday marked the Dow’s sixth straight session of gains, its biggest streak of advances since November.
The blue-chip average spent the first half of Thursday’s session in negative territory before moving higher at about midday.
“The market went up on fumes this week,” said Philip S. Dow, managing director of equity strategy at RBC Dain Rauscher.
“Nobody has any wild expectations to the positive for the jobs report. But, barring some kind of negative report, I still think we’ll see the market tread water.”
The Dow Jones industrials rose 30.15 points, or 0.2%, to 12,560.20.
Broader stock indicators also gained. The Standard & Poor’s 500 index rose 4.39 points, or 0.3%, to 1,443.76, and the Nasdaq composite index advanced 12.65 points, or 0.5%, to 2,471.34.
For the week, the Dow rose 1.7%, the S&P; 500 gained 1.6% and the Nasdaq composite index advanced 2.1%. The Dow added more than 100 points Tuesday after a stronger-than-expected report on sales of existing homes helped shore up investors’ confidence in the economy.
Bond yields rose Thursday in anticipation of the employment report. The yield on the benchmark 10-year Treasury note climbed to 4.68% from 4.65% on Wednesday. The bond market will be open for an abbreviated session today.
The dollar was mixed against other major currencies, sinking to two-year lows against the euro, amid concerns about interest rates.
Gold prices rose.
Oil prices fell slightly a day after a modest easing of global political tensions. Prices had advanced in recent weeks in part because of Iran’s since-ended detention of British sailors and marines.
Investors’ focus returned Thursday to energy inventories and demand. The price of crude futures fell 10 cents to $64.28 in New York trading.
In the stock market this week, some order was restored after some volatile sessions last week.
“The market continues to fluctuate in a narrow range. I don’t expect a big move in either direction because I think the economy has slowed, but the slowdown is proving very mild,” said Stuart Schweitzer, global markets strategist for JPMorgan Private Bank in New York.
He noted that inflation remained higher than the Federal Reserve would like, probably keeping the central bank from lowering short-term interest rates.
“I think the movie will end well, and we’ll be smiling, but there may be some scenes where we just have to take our eyes away from the screen.”
In other market highlights:
* DaimlerChrysler shares rose $4.23, or 5.3%, to $84.80 after billionaire Kirk Kerkorian’s Tracinda investment partnership approached the German automaker’s board about buying its U.S.-based Chrysler unit. He has held stakes in Chrysler since the 1990s, a decade after he lost out on a deal to acquire the full company. Kerkorian said he would offer the United Auto Workers a stake in the company.
The bid also sent shares of General Motors up 87 cents, or 2.8%, to $31.90. Kerkorian was GM’s largest individual shareholder before he sold his stake in December.
* Micron Technology pressured technology stocks after the flash memory maker posted disappointing second-quarter results late Wednesday. The company swung to a loss as costs swelled and prices weakened. Micron shares fell 56 cents, or 4.6%, to $11.51.
* Beer and wine maker Constellation Brands rose 67 cents, or 3.2%, to $21.49 after it reported that fourth-quarter profit grew 26%. Strong wine sales helped the company offset declining beer imports and competition in the British market.
* Mattress maker Sealy fell 72 cents, or 4%, to $17.14 after it reported it charged lower prices to maintain sales growth. The company reported first-quarter profit rose 7%.
* Dell reported late Wednesday that it would not file its annual report on time, citing delays in completing an internal investigation into its accounting practices. Shares of the personal computer maker, which has also delayed its second-quarter and third-quarter reports, rose 15 cents to $23.51.
