- Consumer spending, incomes beat forecasts
- ISM manufacturing rises ahead of estimates
- Jobless claims unexpectedly rise
- T-Mobile US up on customer growth, Sprint speculation
Dow Jones: -0.13%
S&P 500: -0.01%
US stocks ended the day mixed, with small drops in the Dow Jones Industrials and S&P 500, although on the broader NYSE the advance/decline ratio was actually positive.
The Nasdaq Composite managed a positive finish, led by gains in biotechnology stocks.
All of the above transpired before the release of tomorrow's monthly non-farm employment report.
The Dow was traded into the close off by -0.13%, after having reached an all-time high of 16,580.84 on Wednesday, while the S&P 500
fell by 0.01%. The Nasdaq gained 0.31%.
Of interest, Bloomberg cites Jeremy Grantham, Chief Investment Strategist at Grantham Mayo Van Otterloo & Co., as having told clients today that the S&P 500 will climb above 2,250 points, before collapsing after the next US presidential elections.
In economic news today, personal incomes and spending in the States both increased in March, with growth accelerating from the prior month. Spending and incomes rose by 0.9% and 0.5%, respectively, ahead of forecasts, in part due to the implementation of Obama's Affordable Care Act and also due to the unwinding of the negative winter weather effects.
All in all, gross domestic product may be headed for a rise of 3.5% this quarter after having essentially stagnated during the first three months of the year, wrote Capital Economics.
"While these were already incorporated in the first-quarter 2014 advance GDP release, they suggest solid momentum in underlying goods and services spending going into the second quarter of 2014, and we project another 3% increase in consumer spending on the quarter," said Analyst Dean Maki from Barclays Research .
An index measuring activity in the sector, as measured by the Institute for Supply Management, rose to 54.9 in April from 53.7 the month before, ahead of the 54.3 forecast.
Meanwhile, initial weekly unemployment claims unexpectedly rose to a nine-week high of 344,000 last week from a revised 333,000 the week before, according to from the Labor Department. The consensus forecast was for a drop to 320,000.
Shares in T-Mobile rallied 8% after the company added 1.3m new monthly subscribers during the first three months of the year, its highest ever quarterly gain.
T-Mobile US was also boosted by reports that larger telecoms firm has met with banks to make debt arrangements in a potential bid for the company.
Oil major Exxon Mobil was subdued early on despite reporting a less-than-expected 1% decline in earnings per share (EPS). Sector peer , however, impressed with its quarterly results as adjusted EPS rose 27%.
Auto major Ford declined after saying that US vehicle sales declined to 211,126 units in April, down 0.7% on a year earlier. , however, gained after reporting 6.9% growth.
From a sector standpoint the worst performing sectors were: Gold mining (-1.64%), Platinum&Precious metals (-1.61%) and Consumer electronics (-1.57%).
Small decline in crude futures
Front month West Texas crude futures were down by 0.41% to the $99.33/barrel mark on the NYMEX.
10-year US Treasury yields edged lower by three basis points to 2.61%.