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U.S. stocks fluctuate after the open; Apple hits record USD600

Published 03/15/2012, 09:47 AM
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Investing.com - U.S. stock markets traded in a tight range after the open on Thursday, swinging between modest gains and losses as markets showed little reaction to a flurry of mostly upbeat U.S. data which further pointed to the view the U.S. economy was on the road to recovery.

During early U.S. trade, the Dow Jones Industrial Average eased down 0.1%, the S&P 500 index dipped 0.1%, while the Nasdaq Composite index was flat.

Markets shrugged off a report from the U.S. Department of Labor showing that the number of individuals filing for initial jobless benefits in the U.S. last week fell to 351,000, matching a four-year low.

A separate report showed that manufacturing conditions in New York improved to a 21-month high in March, adding to evidence of an improving U.S. economy.

Also Thursday, government data showed that showed that U.S. producer price inflation rose slightly less-than-expected, while core producer prices rose at an annualized rate of 3.0% last month, unchanged from the previous month.

The data underlined the view that the U.S. economic recovery is gathering momentum, after the Federal Reserve upgraded its outlook on the economy earlier this week, causing investors to trim back expectations for a third round of quantitative easing.

Meanwhile, consumer electronics giant Apple, which is the biggest Nasdaq component, rose 1.3% to hit a fresh record high just below USD600 after a Dutch court rejected Samsung’s 3G patent bid to ban iPhone and iPad sales in the Netherlands.

On the downside, shares in Capital One Financial slumped 1% after saying it would sell USD1.25 billion of its common stock to pay for a portion of its acquisition of HSBC Holding's U.S. credit card business.

Clothing retailer Guess plunged 11.2% after reporting lower-than-expected fiscal fourth quarter net profit. The company also forecast a weak first-quarter profit as it expects belt-tightening by European governments to hurt consumer spending.

Across the Atlantic, European stock markets traded in a tight range, as investors took a breather following this week’s strong rally on the back of an improving economic picture in the U.S.

The EURO STOXX 50 eased down 0.1%, France’s CAC 40 shed 0.25%, Germany's DAX added 0.15%, while Britain's FTSE 100 dipped 0.4%.

U.K. shares were pressured after ratings agency Fitch placed the U.K.’s triple-A credit rating on negative outlook late Wednesday.

The agency warned that the country had more than a 50% chance of losing the rating as the UK government had “limited fiscal space” left for maneuver.

During the Asian trading session, Hong Kong's Hang Seng Index eased up 0.05%, while Japan’s Nikkei 225 Index climbed 0.72% to settle at an eight-month high, as exporters rose on the back of a weaker yen.

Shares in Hong Kong, however, swung between gains and losses amid renewed concerns over China’s economic growth outlook.

Chinese Premier Wen Jiabao said on Wednesday that China must embrace slower growth and bolder political reform to keep its economy from faltering.

He also dampened hopes for any near-term easing measures in the country's property sector.

Later in the day, the U.S. was to release government data on manufacturing conditions in Philadelphia.

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