Stocks Finish Higher
Source: MSNBC (Original Article)
Major U.S. stock indexes finished higher Thursday, though below earlier highs, following a dramatic reversal lower for oil prices, which plunged despite a huge decrease in U.S. crude inventories.
A report on U.S. economic growth in the first quarter was revised slightly higher. S&P MarketScope cites a growing perception that the U.S. escaped recession as second-quarter GDP is expected to rise as well. Weekly initial jobless claims were slightly higher.
Bonds fell but closed up from session lows following an apparent asset allocation program to equities from debt. The dollar index was solidly higher. Gold futures were lower.
On Thursday, the blue-chip Dow Jones industrial average finished higher by 52.19 points, or 0.41%, to 12,646.22. The broader S&P 500 index added 7.42 points, or 0.53%, to close at 1,398.26. The tech-heavy Nasdaq composite index was higher by 21.62 points, or 0.87%, ending the session at 2,519.90.
Activity in the broader market was positive, with 19 stocks rising in price for every 11 that declined on the New York Stock Exchange. The ratio on the Nasdaq was17-11 positive. Trading was sluggish, reports S&P MarketScope. Financial stocks were strong.
July West Texas Intermediate crude oil futures, which hit a high of $133.12 per barrel earlier in Thursdays session, fell $4.17 to $126.77 after an Energy Dept. report showed crude stocks unexpectedly fell 8.8 million barrels. Citi Futures’ Tim Evans said the drop came “on a combination of lower imports and higher crude runs and was focused on the Gulf Coast, which showed a 9.3 million barrels drop. Inventories at Cushing, Oklahoma rose 700,000 barrels.”
S&P’s Mark Arbeter believes “crude oil prices are in the topping phase, and we think we could see a fairly large correction back to the $100 to $110/barrel range over the next two to four months.
U.S. jobless claims rose 4,000 to 372,000 for the week cheap flights ended May 24, about in line …continue reading