On Wall Street, leading indices rose on Thursday as investors were encouraged by better-than-expected sales results from the largest American retail chains, although the index growth was limited due to weak labor market news.
The Dow Jones strengthened by 29 points, or 0.27 percent, to 10,927 points, while the S&P 500 rose 0.34 percent to 1,186 points, and the Nasdaq index increased by 0.23 percent to 2,436 points. At the beginning of yesterday’s trading, stock prices fell. The Dow Jones index was down more than 50 points as investors were unsettled by news of record borrowing rates in Greece, which could mean that the European Union and International Monetary Fund’s plan to rescue Athens may not be sufficient. Concerns about the outbreak of budgetary problems in other eurozone members have not yet been completely alleviated, which could harm the euro and the recovery of the global economy. Investors were also cautious yesterday due to the unexpected increase in initial claims for unemployment benefits last week by 18,000, to 460,000, indicating that the American labor market is still not firmly on the path to recovery.
However, in the second half of yesterday’s trading, stock prices recovered following data on a record 9.1 percent increase in sales at the largest retail chains in March, attributed to improved weather conditions and early Easter holidays. Analysts had expected a sales increase of 6.3 percent in stores open for at least a year, and of the 28 largest American retail chains, 90 percent exceeded expectations. As a result, the S&P retail sector index jumped 1.3 percent yesterday, with Amazon.com stock among the biggest gainers, rising 4.5 percent. “Retail is the backbone of the entire recovery. If consumption and retail approach levels from a few years ago, that would be a true recovery,” says Keith Springer, president of Capital Financial Advisory Services. Nevertheless, there was no euphoria in the market, as indicated by the still below-average trading volume. On Wall Street, the American Stock Exchange, and Nasdaq, 8.48 billion shares changed hands yesterday, while last year’s daily average was 9.65 billion. The ratio of stocks that gained to those that lost value was 8 to 7. On European exchanges, stock prices fell yesterday. The London FTSE index weakened by 0.86 percent to 5,712 points, while the Frankfurt DAX fell by 0.81 percent to 6,171 points, and the Paris CAC decreased by 1.20 percent to 3,978 points. (H)
