Investing.com - U.S. stocks closed higher Thursday on reports that the Federal Reserve will discuss monetary stimulus at its meeting next week.
At the close of U.S. trade, the Dow Jones Industrial Average rose 1.24%, the S&P 500 index added 1.08%, while the tech heavy Nasdaq Composite index advanced 0.63%.
Monetary easing speculation sent shares sharply higher on the session after the major indexes traded negative earlier in the day.
Sparking the early selling, the U.S. Department of Labor said the number of people who filed for unemployment assistance in the U.S. last week unexpectedly increased to 386,000, against expectations for a decline to 375,000.
A separate report showed that U.S. consumer price inflation rose 0.2% in May, bringing the annualized rate of inflation to 2.3%, broadly in line with expectations.
Market sentiment came under pressure earlier, as the yield on Spanish 10-year bonds broke through the critical 7% threshold, while Italy’s three-year borrowing costs jumped to the highest level since December, amid concerns over sovereign debt contagion.
Sentiment also remained vulnerable ahead of Sunday’s closely watched general election in Greece, amid fears that a win for anti-bailout parties could precipitate a Greek exit from the euro zone.
Financial stocks edged higher, led by JP Morgan, up 0.50%, while Bank of America added 0.13%, Citigroup edged up 0.18% and Goldman Sachs rose 0.23%. Goldman Sachs chief executive and Chairman Lloyd Blankfein said earlier he had no plans to relinquish his duties running the bank.
On Wednesday, JPMorgan Chase chief executive Jamie Dimon used his testimony before the U.S. Congress to apologize for the bank's multibillion-dollar trading loss.
On the downside, cellphone giant Nokia plunged 14.16% after announcing its plans to cut another 10,000 jobs around the world, marking its biggest revamp in recent history. The Finnish company also warned that the second-quarter loss from its cellphone business would be larger than expected.
The world’s largest software maker, Microsoft also added to losses, retreating 0.77% as it was reportedly preparing to pay more than USD1 billion in a deal to acquire Yammer Inc., operator of a social network for businesses.
The deal would help Microsoft add social-networking tools to the suite of products it offers corporate customers, in addition to stepping up competition with Salesforce.com and Oracle.
Elsewhere, oil and gas major Sunoco slipped 0.13% after saying it is close to finalizing a deal to sell or form a joint venture with the Carlyle Group for its Philadelphia refinery. Other energy stocks were higher on the other hand, as shares in Chevron edged up 0.06% and Exxon Mobil climbed 0.47%.
Also Thursday, official data showed that the U.S. current account deficit widened more-than-expected in the first three months of 2012, posting the largest the largest deficit since the fourth quarter of 2008.
The U.S. Bureau of Economic Analysis said the country’s current account deficit widened to USD137.3 billion in the first quarter, from a revised deficit of USD118.7 billion in the previous quarter. Analysts had expected the U.S. current account deficit to widen to USD132.3 billion.
At the close of European afternoon trade, the EURO STOXX 50 added 0.22%, France’s CAC 40 eased higher by 0.08%, while Germany’s DAX 30 gave back 0.23%.
Markets are awaiting ECB President Mario Draghi’s speech and UOM consumer sentiment numbers Friday.
At the close of U.S. trade, the Dow Jones Industrial Average rose 1.24%, the S&P 500 index added 1.08%, while the tech heavy Nasdaq Composite index advanced 0.63%.
Monetary easing speculation sent shares sharply higher on the session after the major indexes traded negative earlier in the day.
Sparking the early selling, the U.S. Department of Labor said the number of people who filed for unemployment assistance in the U.S. last week unexpectedly increased to 386,000, against expectations for a decline to 375,000.
A separate report showed that U.S. consumer price inflation rose 0.2% in May, bringing the annualized rate of inflation to 2.3%, broadly in line with expectations.
Market sentiment came under pressure earlier, as the yield on Spanish 10-year bonds broke through the critical 7% threshold, while Italy’s three-year borrowing costs jumped to the highest level since December, amid concerns over sovereign debt contagion.
Sentiment also remained vulnerable ahead of Sunday’s closely watched general election in Greece, amid fears that a win for anti-bailout parties could precipitate a Greek exit from the euro zone.
Financial stocks edged higher, led by JP Morgan, up 0.50%, while Bank of America added 0.13%, Citigroup edged up 0.18% and Goldman Sachs rose 0.23%. Goldman Sachs chief executive and Chairman Lloyd Blankfein said earlier he had no plans to relinquish his duties running the bank.
On Wednesday, JPMorgan Chase chief executive Jamie Dimon used his testimony before the U.S. Congress to apologize for the bank's multibillion-dollar trading loss.
On the downside, cellphone giant Nokia plunged 14.16% after announcing its plans to cut another 10,000 jobs around the world, marking its biggest revamp in recent history. The Finnish company also warned that the second-quarter loss from its cellphone business would be larger than expected.
The world’s largest software maker, Microsoft also added to losses, retreating 0.77% as it was reportedly preparing to pay more than USD1 billion in a deal to acquire Yammer Inc., operator of a social network for businesses.
The deal would help Microsoft add social-networking tools to the suite of products it offers corporate customers, in addition to stepping up competition with Salesforce.com and Oracle.
Elsewhere, oil and gas major Sunoco slipped 0.13% after saying it is close to finalizing a deal to sell or form a joint venture with the Carlyle Group for its Philadelphia refinery. Other energy stocks were higher on the other hand, as shares in Chevron edged up 0.06% and Exxon Mobil climbed 0.47%.
Also Thursday, official data showed that the U.S. current account deficit widened more-than-expected in the first three months of 2012, posting the largest the largest deficit since the fourth quarter of 2008.
The U.S. Bureau of Economic Analysis said the country’s current account deficit widened to USD137.3 billion in the first quarter, from a revised deficit of USD118.7 billion in the previous quarter. Analysts had expected the U.S. current account deficit to widen to USD132.3 billion.
At the close of European afternoon trade, the EURO STOXX 50 added 0.22%, France’s CAC 40 eased higher by 0.08%, while Germany’s DAX 30 gave back 0.23%.
Markets are awaiting ECB President Mario Draghi’s speech and UOM consumer sentiment numbers Friday.