Wall St edges higher in last minute swing
US stocks ended slightly higher in a third session marked by late day swings yesterday, but the Nasdaq fell after NetApp gave a weak revenue forecast, casting doubt on the outlook for tech spending.
Major indexes were lower for much of the session, as investors found little reason to buy following three days of gains. In addition, economic figures suggested slowing demand in both Europe and the United States.
However, Wall Street reversed course late in the session and the S&P extended its gains to a fourth straight day.
Underscoring the vulnerability of US companies to events in the Eurozone, data storage company NetApp forecast revenue below expectations, citing uncertainty in Europe. Its shares tumbled 12 per cent to $28.82.
Dow component Hewlett-Packard rose 3.3 per cent to $21.77. The company said on Wednesday it would lay off about eight per cent of its workforce in the next couple of years.
Greece’s future in the Eurozone remains a primary risk for stocks. At least half of Eurozone governments, as well as banks and large companies, are making contingency plans in case Greece decides to leave.
The Dow Jones industrial average was up 33.60 points, or 0.27 per cent, at 12,529.75. The Standard & Poor’s 500 Index was up 1.82 points, or 0.14 percent, at 1,320.68. The Nasdaq Composite Index was down 10.74 points, or 0.38 per cent, at 2,839.38.
The S&P is up two per cent on the week, though the market has lately undergone late-day shifts that have erased both losses and gains, a sign of the markets’ skittishness.
Demand for long-lasting US manufactured goods rose less than expected in April while weekly jobless claims dipped modestly for the week ended 19 May, government data showed.
The transportation sector edged up despite a rebound in oil prices. The rise was led by airlines after JPMorgan raised its price target on several carriers.
US Airways jumped 10.5 per cent to $12.16, its highest since November 2010, and an index of airline stocks gained 3.3 per cent. US Airways shares have more than doubled in 2012, rising about 140 per cent.
After the closing bell on Wednesday, electronic trader Knight Capital Group said it suffered a pre-tax loss of $30m to $35m on the botched Nasdaq trading debut of social media giant Facebook and is demanding the exchange compensate that amount.
Knight Capital Group shares fell 0.5 per cent at $12.38 and Facebook shares rose 2.3 per cent to $32.72.