BECKHAM
07-06-2013, 01:17 AM
Stocks ended higher Thursday following two days of losses that had investors concerned we are heading for a correction.
The Dow Jones industrial average ended up 0.5%, a gain of 80 points, after dropping 217 the day before. Earlier Thursday the blue-chip stocks comprising the index slid into a noontime slump that had some worried the Dow was headed for its first three-day losing streak this year. But the 30-company index pulled back into positive territory by mid-afternoon.
The Standard & Poor's 500 index gained 0.8%, while the Nasdaq composite moved 0.7% higher.
Amid the up-down-up day, the focus on Wall Street had shifted from how high stocks will climb to whether the market is on track for its first drop of 5% or more since November 2012.
The broad market hasn't suffered a more severe "correction," commonly defined as a drop of 10% or more, since the fall of 2011.
OUTLOOK: As stock mojo wanes, more calls for pullback
Investors are also nervous about the big employment report due out Friday and whether it might influence the Federal Reserve's thinking on when to taper its stimulative bond-buying policy.
The health of the job market has been cited by the Federal Reserve as one of the key data points it is tracking to measure the economy's health and serve as a road map as to when it's time to start winding down its market-friendly stimulus.
There is a fear that if the jobs picture is too rosy it might spur the Fed to taper, or pare back, its bond-buying earlier than expected. On the flip side, a dismal number would spur fears that the Fed's stimulus is not boosting the economy.
Fears of a super-hot jobs market cooled Wednesday after payroll provider ADP said private employers added 135,000 jobs in May, below the 165,000 estimate. The government reported Thursday that the number of Americans seeking unemployment benefits fell 11,000 last week to a seasonally adjusted 346,000.
Economists are expecting the Friday report will show an increase in non-farm payrolls of about 165,000.
The yield on the benchmark 10-year Treasury note fell to 2.06% from 2.09% the day before. Earlier the yield briefly fell to 2.01%, reflecting a move from riskier stocks into the safe haven but lower-yielding government bonds.
Wall Street sank Wednesday. The Dow fell 1.4% to 14,960.59. The S&P 500 declined 1.4% to close at 1,608.90. The Nasdaq composite index was off 1.3% to 3,401.48. At the close Wednesday, the S&P 500 was 3.6% lower from it's record close on May 21 — eclipsing the 3.5% drop it suffered in April.
WEDNESDAY: Dow, S&P 500 dive on rising interest rates
The European Central Bank left its benchmark interest rate at a record low of 0.5% on Thursday even though there's still a recession in the 17 countries that use the euro. The Stoxx Europe 600 index fell 1.1%. The major indexes in the U.K., France and Germany were all down more than 1%
Asia stock markets extended losses on Thursday. Hong Kong's Hang Seng fell 1.1% to 21,838.43. Markets in South Korea were closed for a public holiday. The Nikkei 225 index in Tokyo shed 0.9% to 12, 904.02.
Benchmark oil for July delivery was up 91 cents to $94.41 in electronic trading on the New York Mercantile Exchange. Gold rose 13.7 cents to $1,412.20.
Homebuilder stocks got a big boost. KB Home shares were up 6.7% and PulteGroup gained 4.7%. Shares of Toll Brothers saw a 5.4% jump.
The Dow Jones industrial average ended up 0.5%, a gain of 80 points, after dropping 217 the day before. Earlier Thursday the blue-chip stocks comprising the index slid into a noontime slump that had some worried the Dow was headed for its first three-day losing streak this year. But the 30-company index pulled back into positive territory by mid-afternoon.
The Standard & Poor's 500 index gained 0.8%, while the Nasdaq composite moved 0.7% higher.
Amid the up-down-up day, the focus on Wall Street had shifted from how high stocks will climb to whether the market is on track for its first drop of 5% or more since November 2012.
The broad market hasn't suffered a more severe "correction," commonly defined as a drop of 10% or more, since the fall of 2011.
OUTLOOK: As stock mojo wanes, more calls for pullback
Investors are also nervous about the big employment report due out Friday and whether it might influence the Federal Reserve's thinking on when to taper its stimulative bond-buying policy.
The health of the job market has been cited by the Federal Reserve as one of the key data points it is tracking to measure the economy's health and serve as a road map as to when it's time to start winding down its market-friendly stimulus.
There is a fear that if the jobs picture is too rosy it might spur the Fed to taper, or pare back, its bond-buying earlier than expected. On the flip side, a dismal number would spur fears that the Fed's stimulus is not boosting the economy.
Fears of a super-hot jobs market cooled Wednesday after payroll provider ADP said private employers added 135,000 jobs in May, below the 165,000 estimate. The government reported Thursday that the number of Americans seeking unemployment benefits fell 11,000 last week to a seasonally adjusted 346,000.
Economists are expecting the Friday report will show an increase in non-farm payrolls of about 165,000.
The yield on the benchmark 10-year Treasury note fell to 2.06% from 2.09% the day before. Earlier the yield briefly fell to 2.01%, reflecting a move from riskier stocks into the safe haven but lower-yielding government bonds.
Wall Street sank Wednesday. The Dow fell 1.4% to 14,960.59. The S&P 500 declined 1.4% to close at 1,608.90. The Nasdaq composite index was off 1.3% to 3,401.48. At the close Wednesday, the S&P 500 was 3.6% lower from it's record close on May 21 — eclipsing the 3.5% drop it suffered in April.
WEDNESDAY: Dow, S&P 500 dive on rising interest rates
The European Central Bank left its benchmark interest rate at a record low of 0.5% on Thursday even though there's still a recession in the 17 countries that use the euro. The Stoxx Europe 600 index fell 1.1%. The major indexes in the U.K., France and Germany were all down more than 1%
Asia stock markets extended losses on Thursday. Hong Kong's Hang Seng fell 1.1% to 21,838.43. Markets in South Korea were closed for a public holiday. The Nikkei 225 index in Tokyo shed 0.9% to 12, 904.02.
Benchmark oil for July delivery was up 91 cents to $94.41 in electronic trading on the New York Mercantile Exchange. Gold rose 13.7 cents to $1,412.20.
Homebuilder stocks got a big boost. KB Home shares were up 6.7% and PulteGroup gained 4.7%. Shares of Toll Brothers saw a 5.4% jump.