Stocks dipped on Wall Street at the opening of trading Thursday but then turned flat in the wake of weaker-than-expected growth data from Europe and Japan, though news on mergers and acquisitions may lead some traders to see further value in the market even after its recent gains.
The Standard Poor’s 500-stock index, the Dow Jones industrial average and the Nasdaq composite index were all nearly unchanged in morning trading.
A contraction of 0.6 percent in gross domestic product in the euro zone was the steepest for the bloc since the first quarter of 2009, while Japan’s G.D.P. shrank 0.1 percent in the fourth quarter, crushing expectations of a modest return to growth.
Though weakness in Europe has persisted over recent quarters, its implications for global growth and American corporate profits spurred some profit-taking on Wall Street.
The S.P. 500 had gained 6.6 percent so far this year, though a dearth of fresh incentives kept trading thin over the past few sessions.
A government report showed the number of Americans filing new claims for unemployment benefits fell more than expected in the latest week. That suggests the job market is improving, said Peter Cardillo, chief market economist at Rockwell Global Capital in New York.
“But it won’t be much of a catalyst for the market this morning,” he said, because of the news out of Europe.”
Mr. Cardillo said a weaker euro, down 0.8 percent versus the dollar, was also a downward pressure on markets.
Merger and acquisition activity indicated investors saw some value in the market.
H.J. Heinz shares jumped 20 percent after it said that Warren Buffett’s Berkshire Hathaway and 3G Capital will buy the company for $72.50 a share, or $28 billion including debt.
American Airlines and US Airways Group said they plan to merge in a deal that will form the world’s biggest air carrier, with an equity valuation of about $11 billion. US Airways shares rose 3.5 percent.
Wall Street stocks closed little changed in light trading Wednesday.
Article source: http://www.nytimes.com/2013/02/15/business/daily-stock-market-activity.html?partner=rss&emc=rss
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