The Standard Poor’s 500-stock index rose for a fourth consecutive day on Wednesday, but gains eroded in afternoon trading.
The S.P. 500 was 0.3 percent higher — down from 0.7 percent at midday — the Dow Jones industrial average rose 0.2 percent and the Nasdaq composite was flat.
Equities have rallied in recent weeks, with both the Dow and S.P. hitting highs as investors expect central bank stimulus measures will keep supporting market gains.
Such policies have helped spur advances of about 15 percent in major indexes this year despite data showing signs of slowing growth. Activity in New York State’s manufacturing sector unexpectedly contracted in May, falling to minus 1.43 points from 3.05, below expectations for an increase to 4 points. Another report showed that industrial production in the United States fell 0.5 percent in April, more than expected.
“It’s disconcerting that the data was so much lower than what we were looking for, but there’s no reason for investors to sell,” said Michael Binger, senior portfolio manager at Gradient Investments in Minneapolis. “The main things driving the market — the Fed, earnings, consumer confidence — are holding up, and people put money in the market on any down day. I still see a lot of value.”
Agilent Technologies, up 4 percent, was one of the S.P.’s top percentage gainers a day after the company posted adjusted earnings that beat expectations and doubled its stock-buyback program to $1 billion. The company also said it would cut 2 percent of its global work force.
Tech shares also got a lift from Netflix, up 3.8 percent, and Yahoo Inc, up 2.3 percent.
On the downside, Deere Company gave a cautious outlook even as earnings topped forecasts. The stock fell 4.5 percent. Deere’s decline dragged on the S.P. industrial index, which was up only 0.1 percent.
In other data released on Wednesday, the United States Producer Price Index recorded its largest drop in three years in April, falling a seasonally adjusted 0.7 percent.
The N.A.H.B. Wells Fargo Housing Market index rose to 44 points from a downwardly revised 41 in April, according to data from the National Association of Home Builders. The May reading was above forecasts and closer to the 50 mark, which indicates builders see market conditions in a more favorable light.
Crude oil fell 1.8 percent after data showed the euro zone was in its longest recession ever, while a stronger dollar and rising American refined products stockpiles put additional pressure on prices.
The drop in crude pressured shares of energy companies, with Marathon Oil down 0.7 percent, and Cliffs Natural Resources, off 3.2 percent.
Macy’s shot up 2.6 percent after the retailer reported higher first-quarter profit and sales, and raised its quarterly dividend 25 percent.
Shares in SunPower, a maker of solar panels and solar power plants, surged 15.1 percent after the company said it expected to post an adjusted profit for the current quarter
The FTSEurofirst 300 index of European blue chip shares, which closed at a five-year high on Tuesday, paused after a report that the euro zone economy had contracted more than expected, but then resumed its climb, rising 0.7 percent at the end of the session.
China’s factory output growth was surprisingly feeble in April and fixed-asset investment slowed, rekindling fears that a nascent recovery was stalling.
Still, Asian markets closed mainly higher. The Nikkei in Japan rose 2.3 percent, the Hang Seng in Hong Kong gained 0.5 percent and the Shanghai composite was 0.4 percent higher.
Article source: http://www.nytimes.com/2013/05/16/business/daily-stock-market-activity.html?partner=rss&emc=rss