Jobless figures hold back US stocks

0

The Dow Jones industrial average rose 4.39 points to close at 11,989.83

A surprise jump in applications for unemployment benefits and mixed earnings from large US companies have kept stocks on a short leash.

Indexes ended slightly higher, with the Standard & Poor’s 500 closing half a point below 1,300.

The Dow Jones industrial average traded above 12,000 for most of the day but failed to close above that level for the second day in a row. The Dow has not closed above 12,000 since June 19, 2008, just as the financial crisis was worsening.

Procter & Gamble, the maker of consumer products such as Tide detergent, fell 2.9%, the largest drop among the 30 companies which make up the Dow Jones average. P&G said rising commodity prices are pinching its profits.

AT&T fell 2% after saying that new wireless contracts fell to the lowest level in more than five years. Caterpillar rose 0.9% after its fourth-quarter profit quadrupled on strong global demand for mining and construction equipment.

Netflix jumped 15% to 210 dollars. Netflix reported that its subscriber base rose above 20 million customers, after the market closed yesterday. The stock has quadrupled over the last 12 months.

The S&P 500 rose 2.91 points, or 0.2%, to close at 1,299.54. The last time the index closed above 1,300 was August 28, 2008. The Dow inched up 4.39 points, or 0.1%, to close at 11,989.83. The index broke through 12,000 yesterday for the first time since June 2008 but slipped in the late afternoon. The Nasdaq composite index gained 15.78, or 0.6%, to 2,755.28.

First-time unemployment claims rose to 454,000 last week, the highest level since late October. Economists had expected the number of applications to rise to 407,000. Snowstorms in some parts of the country forced companies to lay off workers, economists said.

A government-appointed panel said the financial crisis could have been avoided if Wall Street executives and government officials had properly managed risks. The panel said the Bush and Clinton administrations, the Federal Reserve and Treasury Secretary Timothy Geithner share responsibility for allowing the crisis to happen. The panel’s conclusions had been leaked ahead of its formal report and were widely expected on Wall Street.

Rising stocks narrowly outpaced falling ones on the New York Stock Exchange. Volume was relatively thin at 992 million shares.

This site uses Akismet to reduce spam. Learn how your comment data is processed.