Dow Average Approaches Record After GDP, Jobless Claims
By Rita Nazareth - Feb 28, 2013 1:53 PM ET
U.S. stocks advanced, sending the Dow Jones Industrial Average closer to its record, as government reports showed the economy expanded at the end of 2012 and jobless claims declined more than estimated last week.
Limited Brands Inc. (LTD), the owner of Victoria’s Secret lingerie chain, rose 3.7 percent after profit jumped. J.C. Penney Co. tumbled 15 percent after saying its net loss widened to $552 million. Sears Holdings Corp. (SHLD), the retailer controlled by hedge-fund manager Edward Lampert, slumped 5.6 percent after posting a fourth-quarter loss that was larger than it forecast.
The Standard & Poor’s 500 Index rose 0.5 percent to 1,523.32 at 1:49 p.m. in New York. The index has risen 1.7 percent this month. The Dow added 48.58 points, or 0.4 percent, to 14,123.95. The measure is less than 0.5 percent away from its October 2007 (INDU) record. Trading in S&P 500 (SPX) companies was about 17 percent below the 30-day average at this time of day.
“There is good news,” E. William Stone, chief investment strategist at PNC Wealth Management in Philadelphia, said in a telephone interview. His firm manages about $115 billion. “Even though the GDP headline was a bit disappointing relative to expectations, we saw a revision up and the underlying components seem healthier. There’s less concern about the durability of the recovery.”
Gross domestic product grew at a 0.1 percent annual rate, up from a previously estimated 0.1 percent drop, revised figures from the Commerce Department showed.
Economists predicted a 0.5 percent gain. Jobless claims fell to 344,000 in the week ended Feb. 23. The median forecast called for 360,000 applications. Business activity in the U.S. unexpectedly expanded in February at the fastest pace in almost a year.
more:
http://www.bloomberg.com/news/2013-02-28/u-s-stock-index-futures-little-changed-before-gdp-report.html
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