US Stocks Finish Week Higher, Boosted By Earnings
U.S. blue-chip stocks pushed to a fresh multi-year high Thursday to end a holiday-shortened week as a round of robust earnings reports overshadowed lackluster U.S. economic data.
The Dow Jones Industrial Average finished up 52.45 points, or 0.42%, at 12505.99, its highest close since June 5, 2008. Travelers rose $2.19, or 3.7%, to 61.32, after the insurer boosted its dividend as first-quarter profit exceeded Street forecasts.
The Nasdaq Composite climbed 17.65, or 0.6%, to 2820.16, its highest close since Feb. 18. The Standard & Poor's 500-stock index added 7.02, or 0.5%, to 1337.38.
Better-than-expected earnings from bellwether companies helped the market extend gains this week, pushing the Dow up 1.3% over four sessions. The stock market will be closed on Friday in observance of Good Friday.
Volume was light on Thursday ahead of the three-day weekend. Only 3.7 billion shares traded hands in New York Stock Exchange Composite volume, below the average daily volume of roughly 4.46 billion shares.
Apple helped lead the technology sector higher on Thursday, rising 8.29, or 2.4%, to 350.70, after the computer and electronics-devices maker reported quarterly profits that nearly doubled as consumers snapped up iPhones.
Verizon Communications slid 88 cents, or 2.3%, to 36.91, after its first-quarter profit more than tripled, but its average revenue per user rose by less than analysts expected.
Still, investors said first-quarter earnings have added to the market's upward momentum.
"Apple's earnings seem to indicate that the consumer is doing well," said Tom Villalta, lead portfolio manager at the Jones/Villalta Opportunity Fund. That has eased some fears that companies would get hit in the first quarter if rising crude-oil prices made consumers more reluctant to spend. "What we're seeing in earnings is it's not having as pronounced an effect as we had thought," he said.
U.S. economic data eroded some of the market's confidence in the recovery. The Federal Reserve Bank of Philadelphia's regional business index was 18.5 in April, falling below analysts' estimates for a 35.0 reading. Separately, the number of weekly jobless claims declined, but by less than expected, and the previous week's figures were revised up.
"We're not out of the woods just yet," cautioned Kevin Mahn, chief investment officer at Hennion & Walsh. "It's going to be very difficult for our economy to produce the number of jobs that we need."
Among other companies reporting earnings, Morgan Stanley's shares jumped 44 cents, or 1.7%, to 26.48, after earnings beat Wall Street's estimates, though revenue fell short of forecasts.
Shares of McDonald's fell 1.49, or 1.9%, to 76.91, after the fast-food giant's earnings beat analyst estimates, but its operating margin edged higher. General Electric shed 45 cents, or 2.2%, to 19.95, after the the industrial conglomerate's earnings beat forecasts and GE boosted its quarterly dividend by a penny, but analysts noted margin concerns.
Mutual-fund company T.Rowe Price fell 2.29, or 3.5%, to 64.08, after its first-quarter earnings and revenue missed Street forecasts.
The U.S. dollar weakened against both the euro and the yen. The euro was trading recently at $1.4548, up from $1.4523 late Wednesday in New York.
Demand for U.S. Treasurys rose, pushing yield on the 10-year note down to 3.40%.
Crude-oil prices settled above $112 a barrel, while Comex gold futures for April delivery settled at a record high above $1,503 per ounce.
