Stocks Rally for 4th Session
Wall Street advanced for a fourth straight session Thursday, meandering higher even as mixed economic signals left some investors indecisive about their next move after this week’s big gains.
Blue-chip shares overcame several dips into negative territory to manage a modest rise, extending this week’s rally by the Dow Jones industrial average to more than 350 points.
In other trading, oil fell to a three-month low. Treasury bond yields rebounded somewhat.
The Dow tacked on 28.74 points to 10,493.19 -- up 0.3% for the day and nearly 3.5% for the week -- as it rallied at the session’s end after trading in a narrow range through the day.
Broader indexes were stronger. The Standard & Poor’s 500 rose 5.52 points, or 0.5%, to 1,191.08.
Technology stocks continued to lead the way: The Nasdaq composite index gained 11.93 points, or 0.6%, to 2,042.58.
Advancing issues outnumbered decliners by more than a 3-to-2 ratio on the New York Stock Exchange but by a narrower margin on Nasdaq.
Stocks have powered ahead this week, helped by falling oil prices, a tame consumer inflation report and optimism that China could revalue its currency this year, potentially halting the growth of the U.S. trade deficit.
On Thursday, oil prices eased further, with near-term futures declining 33 cents to $46.92 a barrel in New York, a three-month low.
But economic data were mixed. The Labor Department said the number of people signing up for jobless benefits dropped sharply last week, a sign of strength. However, the Conference Board reported that its index of leading economic indicators fell in April, the fourth consecutive decline.
“We’ve seen a lot of mixed data, as is usually the case with fast growth going to slow and the Fed raising interest rates,” said Scott Wren, equity strategist for A.G. Edwards & Sons.
Some analysts say the stock market could get a big lift if investors begin to believe that the Fed is becoming satisfied that growth and inflation have slowed enough. That could lead the central bank to halt its credit-tightening campaign this summer, some experts say. The Fed’s next meeting is the last week in June.
Long-term Treasury bond yields, which fell to three-month lows Wednesday, crept back up Thursday. The yield on the 10-year T-note ended at 4.11%, up from 4.08%.
Among Thursday’s market highlights:
* Motorola helped lift the tech sector after the world’s No. 2 maker of mobile phones said it might buy back as much as $4 billion of stock, or about 10% of its total. The repurchase would be Motorola’s first. Motorola rose 41 cents to $17.31, its ninth straight advance and the highest closing price since January.
Among other tech issues, Apple jumped $1.71 to $37.55, Rambus gained 53 cents to $15.33 and Ixia rallied 75 cents to $17.85.
* Many retailers continued to rally on optimism about consumer spending. Federated Department Stores gained $1 to a 52-week high of $68.94, Nordstrom rallied $1.21 to $59.93, also a 52-week high, and Guitar Center was up $1.44 to $55.17.
AnnTaylor Stores rose 62 cents to $25.95 after the women’s apparel retailer reported that its first-quarter profit fell by nearly half, but posted better-than-expected sales. Men’s Wearhouse soared $4.95 to $49 on its quarterly profit report.
* A gauge of energy shares had the biggest gain among 10 industry groups in the S&P; 500, advancing 1.9%, in a rebound from recent heavy selling. Exxon Mobil rose $1.18 to $54.83; Chevron added 71 cents to $52.16.
* General Motors advanced $1.14 to $32.75. After the market closed, GM said its board had decided the company was neutral with respect to the offer by Kirk Kerkorian’s Tracinda Corp. to purchase as many as 28 million GM shares at $31 apiece.
* DuPont was among the Dow’s biggest decliners -- falling 43 cents, or 0.9%, to $47.61 -- after the company said it received a Justice Department subpoena for documents regarding perfluorooctanoic acid, a chemical used to make its nonstick Teflon product. The Environmental Protection Agency has said the chemical could pose health risks.
