Shares Eke Out a Slim Gain

Wall Street stocks ended fractionally higher on Wednesday after data showed retail sales rose more than expected in February.

The Standard Poor’s 500-stock index gained 0.1 percent, the Dow Jones industrial average added about 5 points and the Nasdaq composite index rose 0.1 percent by the end of trading. European market indexes closed moderately lower.

Investors had been looking for signs of any impact on spending triggered by elevated unemployment and a higher payroll tax that went into effect at the start of the year, but the Commerce Department said retail sales increased 1.1 percent, the largest rise since September.

“That was a better-than-expected report across the board, even the numbers excluding autos and gas were better than expected,” said Peter Jankovskis, co-chief investment officer at OakBrook Investments in Lisle, Ill. “So much for the increase in payroll taxes. Pretty much it’s been a regular habit that the numbers have been coming in better than expected.”

Other data showed import prices rose more than expected in February, driven by the biggest increase in fuel prices since August, while export prices rose 0.8 percent for the month, the largest monthly gain since September.

The Dow recorded a ninth consecutive day of gains and the S.P., at 1,554.51, was still climbing toward its closing high set on Oct. 9, 2007, 1,565.15.

Boeing slipped 0.3 percent after the company won approval from the Federal Aviation Administration on Tuesday to start testing a redesigned battery for the 787 Dreamliner, putting it a step closer to returning the troubled airplane to regular service.

Coach shares rose 2 percent after Citigroup raised its rating on the stock to buy from neutral.

But Express Inc. slumped 9.1 percent after the apparel retailer posted fourth-quarter earnings and said it was off to a slow start in the first quarter.

Spectrum Pharmaceuticals shares tumbled 35.7 percent after the company forecast a steep drop in full-year sales as it expects uptake of its biggest-selling product, the colon cancer drug Fusilev, to significantly drop as cheaper generics enter the market.

Article source: http://www.nytimes.com/2013/03/14/business/economy/shares-slip-despite-economic-data.html?partner=rss&emc=rss