| US trade update: Dow Jones Industrial higher, just |
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| Written by AP | |
| Thursday, 18 March 2010 16:03 | |
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Inflation, jobless claims and future economic growth are being tempered by new concerns about debt problems in Greece. Stocks are trading in a narrow range after a fresh batch of reports showed that the economy continues to slowly regain strength. At 12pm on Wall Street the Dow Jones Industrial Average (INDEXDJX:.DJI) is higher 0.05% at 10,739.26. The S&P 500 (INDEXSP:.INX) is lower 0.29% at 1,162.77 The Nasdaq Composite (INDEXNASDAQ:.IXIC) is lower 0.06% at 2,387.55. Thursday's slightly positive reports on inflation, jobless claims and future economic growth are being tempered by new concerns about debt problems in Greece. That's keeping the major indexes narrowly mixed. Stocks are trading in a narrow range Thursday after a fresh batch of economic reports showed the economy continues to slowly regain its strength. The slightly positive reports on inflation, jobless claims and leading indicators are being tempered by fresh concerns about debt problems in Greece. The reports continue to paint a picture that the domestic economy is slowly improving. Stocks have steadily edged higher over the past five weeks on similar news, even though the data hasn't shown signs of strong growth. "The market has been grinding higher on what has been benignly positive news," said Alan Gayle, senior investment strategist for RidgeWorth Investments. "There is a growing sense the economy is plodding along in the right direction." In late morning trading, the Dow Jones Industrial Average rose 17.31, or 0.2 percent, to 10,750.98. The Standard & Poor's 500 index fell 1.49, or 0.1 percent, to 1,164.72, while the Nasdaq composite index fell 0.74, or less than 0.1 percent, to 2,388.35. The Dow is looking to close higher for the eighth straight day. The Labor Department said the Consumer Price Index was unchanged in February. Excluding volatile energy and food prices, the CPI rose 0.1 percent. Economists polled by Thomson Reuters, on average, forecast a rise of 0.1 percent in both figures. The slow economic recovery and continued high unemployment have kept prices in check. It was the second straight day the Labor Department reported tame inflation figures. On Wednesday the government reported that wholesale prices barely rose in February. The Federal Reserve has said inflation is expected to remain low for quite some time. That will allow the central bank to keep interest rates low to help try and drive economic growth. Low rates are also favorable for stocks and other riskier investments like commodities. Gains over the past couple of days came after the Fed said it would keep its federal funds rate near zero and noted the economy is showing more signs of improvement. High unemployment is likely to be the biggest stumbling block for strong, sustained growth. The Fed isn't expected to start hiking rates until job creation is consistent. The Labor Department also said Thursday that initial jobless claims fell by 5,000 to a seasonally adjusted 457,000 last week. Economists were expecting claims to fall to 455,000. Greece Worries Thursday's economic reports are being offset somewhat by the latest worries in Greece. The country warned it might turn to the International Monetary Fund for support if European leaders can't agree to a bailout plan next week. Worries about Greece's debt have weighed on the market off and on for nearly two months as the country tries to sort out billions of dollars in budgetary gaps. Overseas markets were mixed. "That's why you're seeing a little bit of resistance," Greg Merlino, president of Ameriway Financial Services, said about Greece. "Whenever we hear Greece, we get this knee-jerk reaction, is this the first domino to fall?" There are concerns debt problems could spill over to other weak European countries like Spain and Portugal. The dollar rose against the euro and other currencies. 
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| Last Updated ( Thursday, 18 March 2010 16:06 ) |