U.S. stocks rose a bit on Thursday. The rise in the stock rates was led by the consumer-discretionary sector following strong first-quarter earnings reports from Starbucks and Marriott and a bigger-than-expected rise in existing-home sales that boosted Home Depot.
The Dow Jones Industrial Average went up by 9.37 points, 0.08% to 11134.29. Boeing was the highest gainer with a gain of 1.43, or 1.9%, to 75.59. Credit Suisse raised its investment rating on the stock to surpass from neutral. Home Depot was up by 45 cents, or 1.3%, to 35.72. Reports also showed that home sales rose and were more than expected in the month of March despite the expiry of the government’s tax credit program. On the other side Verizon Communications experienced a drop of 28 cents, or 1%, to 29.28.
Starbucks (Nasdaq) advanced 1.86, or 7.3%, to 27.25. The coffee giant reported traffic growth in U.S. stores for the first time in 13 quarters, which contributed to a 7% jump in same-store sales.
Health care sector witnessed a fall as Baxter International joined the list of companies that have slashed their guidance for reasons related to the U.S. health-care bill. Baxter fell by 7.82, or 13%, to 51.13.
EBay (Nasdaq) fell 1.51, or 5.7%, to 24.78. PNC Financial Services Group climbed 3.52, or 5.4%, to 68.82. American depositary shares of ABB Ltd. dropped 1.61, or 7.2%, to 20.67. Chipotle Mexican Grill jumped 17.97, or 14%, to 144.72 showing a 45% rise. Netflix (Nasdaq) the online video-rental company rose to 13.27, or 15%, to 100.25 showing a 45% rise. Nokia plunged 1.96, or 13%, to 12.99. Qualcomm (Nasdaq) went down by 3.30, or 7.7%, to 39.33. Qualcomm (Nasdaq) went down by 3.30, or 7.7%, to 39.33.
Experts feel that U.S. stock market has a lot of support for growth any sell off has takers in the marketplace. The rise in certain company’s stocks was also followed by fall in certain share prices. It was a mixed bag situation but the rise in the consumer-discretionary sector clearly shows consumer spending is on a rise and the recession effect is sliding down.
