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Stocks gain ground
from recent losses
NEW YORK >> Buyers enticed by Wall Street's depressed prices moved back into the market yesterday, giving stocks a moderate boost after a more than 2 1/2-week slide.
Muddled economic news on the labor market sent the major indexes fluctuating in the first part of the session, but investors shook off any concerns and all of the major indexes had turned higher by the close of trading.
"In the end, with earnings as strong as they've been, we're going to overlook the little economic reports," said Bill Groenfeld, head trader for vFinance Investments. "Right now, we're seeing earnings-driven buying, which is smart and good for the economy anyway."
The Dow Jones industrial average rose 24.81, or 0.2 percent, to 10,495.55.
The broader indicators also advanced. The Standard & Poor's 500 index rose 2.07, or 0.2 percent, to 1,128.59. The Nasdaq composite index gained 5.42, or 0.3 percent, to 2,019.56, after falling 52.07 points Wednesday, its biggest one-day loss in more than four months.
The price of the Treasury's 10-year note closed down 17/32 point, while its yield rose to 4.18 percent from 4.11 percent Wednesday. Two-year Treasury notes were down 1/8 point and yielded 1.83 percent, up from 1.76 percent Wednesday.
With prices lower after a decline that began in mid-January, investors were looking to pick up some bargains. Still, the major indexes moved sideways for much of yesterday's session as investors tried to interpret the day's economic news.
First-time jobless claims rose by 17,000 last week, according to the Labor Department, while worker productivity grew by only 2.9 percent in the fourth quarter, down sharply from 9.5 percent in the third quarter. Economists expected jobless claims to remain level and productivity to rise by 3.4 percent.
"When you look at the productivity numbers, it shows that the cost-cutting that drove earnings is behind us, and the earnings themselves are back to a more normal range," said Subodh Kumar, chief investment strategist for CIBC World Markets. "We're starting a slower growth phase and leaving the faster cyclical recovery phase, and that will move investors into the larger-cap stocks."
A more important indicator was expected today, when payroll figures will be reported for January. The market was looking for a better performance than the meager 1,000 jobs that employers added in December.
While they awaited today's report, investors continued a subtle shift toward defensive positions in the consumer and health care sectors.
Gainers included brewer Adolph Coors Co., which jumped $5.58, or 10 percent, to $61.50, on the strength of its earnings, which blew past Wall Street expectations.
PepsiCo Inc. climbed 95 cents to $48.55 after meeting analysts' expectations with a 30 percent rise in quarterly earnings.
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