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U.S. stocks advance after the open on retailers; Dow Jones up 0.40%

Published 12/02/2010, 09:56 AM
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Investing.com – U.S. stocks were up after the open on Thursday, as upbeat retail sales data overshadowed worse-than-expected U.S. employment data, while concerns over euro zone sovereign debt contagion eased.

During early U.S. trade, the Dow Jones Industrial Average gained 0.40%; the S&P 500 index rose 0.38%, while the Nasdaq Composite index advanced 0.43%.

Earlier in the day, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending November 27 rose to a seasonally adjusted 436K, after falling to a revised 410K in the preceding week. Analysts had expected initial jobless claims to rise to 423K.

Shares in retailers were broadly higher after a number of major retailers reported data on November sales. Shares in clothing retailer Abercrombie & Fitch soared 8.64% after the company said same-store sales rose by 22% in November.

Elsewhere within the sector, shares in retailer J.C. Penny jumped 3.38% after reporting November same-store sales rose by 9.2%.

Meanwhile, shares in the financial sector were broadly higher after European Central Bank President Jean-Claude Trichet said that the central bank would continue with its government bond purchase program.

Shares in global financial service provider JP Morgan Chase jumped 1.28%, rivals Citigroup saw shares climb 1.40%, while U.S. listed shares of Spain’s largest lender Banco Santander surged 2.12%.     

In corporate news, shares in food-and-beverage giant PepsiCo shed 0.66% after it said it would acquire a 66% stake in Russia’s largest food-and-beverage company Wimm-Bill-Dann Foods for approximately USD 3.8 billion. Shares in Wimm-Bill-Dann rallied 29.88% following the news.  

Meanwhile, in earnings news, shares in doughnut store chain Krispy Kreme surged 7.79% after the company said third quarter net profit jumped to USD 2.4 million, compared to a loss of USD 2.4 million a year earlier.   

But shares in clothing retailer Aeropostale tumbled 9.44% after it said third quarter net profit fell to USD 58.5 million, down from 62.6 million a year earlier. The company said that revenue in the third quarter was USD 602.8 million, falling short of analyst expectations for revenue of USD 605 million.

Across the Atlantic, European stock markets were up: the EURO STOXX 50 gained 0.81%, France’s CAC 40 jumped 0.67%, Germany's DAX rose 0.56%, while Britain's FTSE 100 rallied 1.41%.

Later in the day, the U.S. was to produce data on pending home sales. 


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