Stocks Up Slightly on Economic News 07/30 09:56
U.S. stocks crept higher following news that the economy surged ahead in the
spring. Trading was quiet as investors waited for a statement from the Federal
Reserve later Wednesday. Most world markets were mixed.
NEW YORK (AP) -- U.S. stocks crept higher following news that the economy
surged ahead in the spring. Trading was quiet as investors waited for a
statement from the Federal Reserve later Wednesday. Most world markets were
KEEPING SCORE: The Dow Jones industrial average fell 14 points, or 0.1
percent, to 16,898 as of 10:42 a.m. The Standard & Poor's 500 index edged up
two points, or 0.1 percent, to 1,972. The Nasdaq gained 20 points, or 0.5
percent, to 4,463.
THE ECONOMY: The Commerce Department said the economy grew at a 4 percent
clip in the three months ending in June, helped by rising spending. A recovery
in housing and larger outlays by state and local governments drove the gains.
TWEET: Stronger revenue from Twitter sent the company's stock up 21 percent
in early trading. The social-networking company reported a quarterly loss late
Tuesday but its revenue more than doubled over the year, thanks to new
advertising tools and a surge in traffic from soccer fans following the World
Cup. Twitter's stocksurged $8 to $46.61.
LAYOFFS AND PROFITS: Amgen said Tuesday that it plans to lay off up to 15
percent of its worldwide workforce and close four sites, even as it reported
second-quarter results that trounced Wall Street expectations. The drugmaker
also raised its forecasts for its 2014 profit and sales. Amgen's stock climbed
$6.59, or 5 percent, to $129.90.
BUSY WEEK: It's a busy week for economic news. Federal Reserve officials
wrap up a two-day meeting Wednesday afternoon. There's a report on China's
manufacturing industry out Thursday, and the U.S. Labor Department releases its
monthly jobs report on Friday.
ONE VIEW: "U.S. data will be the main event," says Chris Weston, market
strategist at IG in Melbourne. Sanctions against Russia remain a concern.
Expectations of more penalties had dampened stocks over the past two weeks. The
U.S. and Europe on Tuesday announced tougher sanctions against Russia in
response to an attack on a Malaysian airliner over an area of Ukraine
controlled by pro-Russian separatists.
EARNINGS PARADE: Wall Street is in the middle of second-quarter earnings
season, when big companies turn in their springtime results and tell investors
how they think the rest of the year will shape up. This week, ExxonMobil and
Procter & Gamble are among the heavyweights posting earnings.
NOT BAD: So far, the news has been much better than many expected. More than
half of the companies in the S&P 500 have turned in results, and roughly seven
out of 10 have reported higher profits than analysts projected, according to
S&P Capital IQ.
EUROPE: Major markets in Europe barely moved. Germany's DAX inched up 0.1
percent and France's CAC 40 dipped 0.1 percent. Britain's FTSE 100 fell 0.1
OTHER MARKETS: The report of stronger U.S. economic growth sent prices
falling for Treasurys, driving U.S. government bond yields higher. The yield on
the 10-year note jumped to 2.52 percent from 2.46 percent late Tuesday, a big
move in the usually placid bond market. Benchmark U.S. crude for September
delivery rose 49 cents to $101.53 a barrel.