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U.S. stocks higher despite surging oil, conflicting data

Published 03/01/2012, 04:20 PM
Updated 03/01/2012, 04:21 PM
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Investing.com - U.S. stocks closed higher Thursday, despite conflicting U.S. economic data and surging oil prices.
 
Near the close of U.S. trade, the Dow climbed 0.22%, the S&P 500 advanced 0.62% and the Nasdaq added 0.74%.
 
Dampening the rally, the Institute for Supply Management reported manufacturing activity expanded at a slower rate than expected in February.

The ISM index of purchasing managers’ fell to 52.4 last month, from a reading of 54.1 in January, disappointing expectations for an increase to 54.6.

However, in bullish news, government data showed that U.S. initial jobless claims declined modestly last week, holding steady near the lowest level since March 2008.

The U.S. Department of Labor said that initial claims for state unemployment benefits fell 2,000 to a seasonally adjusted 351,000. The previous week's figure was revised up to 353,000 from the previously reported 351,000.

Separate reports showed that the U.S. core personal consumption expenditure index rose broadly in line with market expectations in January, while personal spending and personal income both rose less-than-expected.
 
Meanwhile, in Europe shares closed higher after the ISDA stated the restructuring of Greek government bonds would not trigger credit default swaps.

However, sentiment remained weak, as concerns regarding the viability of Wednesday’s massive liquidity injection by the European Central Bank arose.

In addition, worries over the economic outlook for the region were exacerbated after official data showed that the unemployment rate in the single currency bloc climbed to the highest level since the inception of the euro in January, while the annualized rate of inflation also increased.

Another report showed that the euro zone's manufacturing sector contracted for the seventh consecutive month in February.
 
However, bond auctions in both Spain and France posted sharply lower yields reassuring investors that the crisis may be ending.
 
Crude oil rocketed above USD110 per barrel as news of a Saudi pipeline explosion hit the market late in the trading session.
 
Clothing retailer Gap Inc jumped 7% as same store sales beat estimates.
 
General Motors added 1.4% on a U.S. sales gain.
 
Research in Motion gave back 4.6% after Jeffries & Co slashed its earnings estimate and provided bearish forecasts for the Blackberry maker.
 
Fine art auction house, Sotheby’s plunged 11% upon reporting a 26% fourth quarter profit slump.
 
At the close of European trade, the EURO STOXX 50 surged 1.38%, France's CAC 40 advanced 1.32%, while Germany’s DAX jumped 1.17%. Meanwhile, in the U.K. the FTSE 100 climbed 0.94%.
 
Investors are awaiting German retail sales and Canadian GDP, as well as the outcome of the final day of EU leader’s Brussels meeting.



 

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