Investors cautious after recent streak
NEW YORK – Wall Street neared the end of a winning week in light pre-holiday trading Thursday as investors, awaiting the release of March employment figures, remained cautiously optimistic after their recent buying streak.
There was a subdued tone to trading as investors adjusted portfolios ahead of a three-day weekend; the stock market is closed for Good Friday. Investors were being particularly careful because they won’t be able to trade on today’s Labor Department employment report until the market reopens Monday morning.
There was little reaction to the department’s report 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.
After five straight advances in the Dow Jones industrial average, the index spent most 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.”
In late afternoon trading, the Dow rose 35.92, or 0.29 percent, to 12,565.97.
Broader stock indicators also rose. The Standard & Poor’s 500 index rose 4.42, or 0.31 percent, to 1,443.79, and the Nasdaq composite index advanced 10.46, or 0.43 percent, to 2,469.15.
Bonds fell ahead of the employment report; the yield on the benchmark 10-year Treasury note rose to 4.68 percent from 4.65 percent late Wednesday.
The dollar was mixed against other major currencies, and sank to two-year lows against the euro ahead of the long weekend and amid concerns about interest rates. Gold prices rose during the session.
Oil prices rose a day after a modest ease in global political tensions. Prices had advanced in recent weeks in part amid tensions over Iran’s now-ended detention of British sailors and marines. Investors are now focused on energy inventories and demand, and sent a barrel of light, sweet crude down 36 cents to $64.02 on the New York Mercantile Exchange.
DaimlerChrysler AG shares surged $3.13, or 3.9 percent, to $84.12 after billionaire investor Kirk Kerkorian’s Tracinda Corp. approached the German automaker’s board about acquiring its Chrysler unit. He has held stakes in Chrysler since the 1990s, and at one point bid to acquire the full company.
The bid also sent shares of General Motors Corp. up 73 cents, or 2.4 percent, to $31.76. Kerkorian was previously GM’s largest individual shareholder, before selling his stake in December.
Micron Technology Inc. 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. Shares fell 59 cents, or 4.9 percent, to $11.48.
Beer and wine maker Constellation Brands Inc. rose 67 cents, or 3.2 percent, to $21.49 after it reported fourth-quarter profit grew 26 percent. Strong wine sales helped the company offset a decline in imported beer, and competition in the British market.
Mattress maker Sealy Corp. fell 75 cents, or 4.2 percent, to $17.11 after it reported it charged lower prices to maintain sales growth. The company reported first-quarter profit rose 7 percent.