NEW YORK (Dow Jones) - After three days in a red ground, Wall Street on Thursday supported by surprisingly strong economic data closed positive. Searched were mainly financial and pharma stocks. Only the technology-heavy Nasdaq, the rates were changed after yesterday's outperformance on average, barely.
The Dow Jones index of 30 industrial stocks climbed by 0.7% or 58 points to 8556. The S & P 500 rose 0.8% and 8 points on 918th The Nasdaq Composite closed unchanged at 1808 points. Implemented were 1.01 (Wednesday: 1.32) billion shares. It had 1743 gains against 1255 losers, 105 tracks closed unchanged.
"More than anything else will make better economic data continued to ensure that the setbacks in this market not be very strong," commented one analyst. Each time the seller had ventured out to be, come back better news, he added. He is confident that it will go up because the economic tide has made it seemingly imminent and will have other politically initiated stimulus packages.
On reporting day, there was support from the economic side: good weekly U.S. labor market data, a surprisingly positive Philly Fed Index and the index of leading indicators for the development of the U.S. economy pointed to a continued cyclical brightening.
The number of recipients of unemployment benefits has declined over the previous week to 148,000 - that is the highest drop since November 2001. Who by the Reserve Bank of Philadelphia calculated diffusion index for general business in the region in June surprisingly strong risen to minus 2.2, while economists had only expected to increase to minus 18.0 from 22.6 previously.
Searched were especially financial stocks. The Dow recovered about Bank of America increased by 4.9% to $ 12.90 and JP Morgan Chase 4.4% to $ 34.17 and were thus day's winner. Goldman Sachs climbed by 2.4%. The day before Barack Obama made a major reform of financial supervision in the United States had announced that would give the Fed a significant increase in power. In addition to the rating grades of S & P for a number of regional banks, this had on the previous day contributed to the losses in the sector.
Pharma stocks continued their generally positive trend of the week. The Dow gained 3.6% to $ 25.65, Merck and Pfizer 2.3% to $ 14.92. "Pharma shares are going well, because the laws are already priced in but not so bad and not so soon be as feared," said one trader.
On the other hand, the Nasdaq lost 6.1% to $ 14.13 SanDisk. Needham Research had downgraded the stock to "underperform" from above "Hold" and an oversupply in the flash memory chip reference, which should make for lower prices. The Dow was Caterpillar with minus 2.1% to $ 34.08 the biggest losers. The heavy equipment and machinery supplier had informed that the retail sales of machines in North America in the three months to 31 May in the previous year has fallen by 57%.
