Stocks posted tentative early gains Thursday, as a weak reading on July manufacturing and mixed earnings news influenced early trade.
X The Dow Jones industrial average gave up its opening gain and struggled against fractional losses. The Nasdaq composite eased from its opening mark, a new high, and also slid into a narrow decline. The S&P 500 clung to a gain of less than 0.1%, and held on to its new high.
Nike Paces Dow; T-Mobile, Sarepta, Union Pacific Up On Earnings
Apple (AAPL) and three of the four FANG stocks traded higher at the open. The laggard, Netflix (NFLX) dipped a fraction.
Among Dow stocks, Nike (NKE) punched out the top gain, jumping 2.3% as Morgan Stanley upgraded the stock to overweight, from equal-weight.
Travelers (TRV) took the Dow's hardest hit, down 2.3%. The property insurer posted earnings well below consensus views due to high levels of weather-related losses, according to the company, but revenue was better-than-expected. The loss sent shares below support at its 10-week moving average in heavy trade, a sell signal.
Dow issue American Express (AXP) dropped 0.8% after reporting late Wednesday its second-quarter earnings and revenue were above analyst targets, but its loss provisions rose sharply due to loan write-offs.
Sarepta Therapeutics' (SRPT) sparked 17% higher at the open. The Cambridge, Mass.-based biotech reported a much narrower-than-expected loss during the second quarter, and revenue nearly 60% above consensus targets. The gain lifted shares well above converged 10- and 40-week moving averages, starting up the right side of a 10-month long, 59% deep consolidation.
Keycorp (KEY) fell 4% after delivering positive second-quarter results, killing its effort to break out past a 19.63 buy point.
T-Mobile US (TMUS) jumped 2%, propelled by a solid second-quarter revenue and earnings beat after Wednesday's close. The gain positioned the stock for a test of resistance at its 10-week moving average, as it attemps to build the right side of a six-week consolidation.
Logistics leader CH Robinson Worldwide (CHRW) dropped more than 5% after its second-quarter report. Philip Morris (PM) dropped 3%. Railroad United Pacific (UNP) fell 1%.
In the utility sector, Spokane, Wash.-based Avista (AVA) soared 18% on word that Canadian utility Hydro One would buy the company for $53 a share, a 24% premium to Tuesday's closing price. The deal, valued near $5.3 billion, would "create one of North America's largest regulated utilities," according to Hydro One.
ECB Holds; Philly Fed Week, Jobless Claims Dive
Manufacturing growth weakened in mid-Atlantic region in July, sending to the Philadelphia Federal Reserve's Manufacturing Business Outlook Survey to 19.5, down from 27.6 in May and well short of economists' projections for a reading of 22. The reading was the lowest since November for the index, which has shown growth for the past 12 months. Shipments and new orders dropped off, and the employment index slipped 5 points.
First-time unemployment claims dived 6%, to 233,000, in the week ended July 15, the Labor Department reported. That was far below economist expectations for a slight decrease, to 246,000.
The Conference Board's leading economic indicators index for June is due at 10 a.m. ET.
In Europe, stocks traded firmly higher after the European Central Bank left unchanged its rate targets and the language of its previous announcement, leaving expectations that the bank will begin tapering its stimulus support in the fall. Markets will be tuned to a press conference with ECB President Mario Draghi later today for more nuance.
The FTSE 100 in London traded up 0.7%, the DAX in Frankfurt held a 0.7% gain and the CAC 40 in Paris climbed 0.4%.
Markets in Asia knocked out solid gains, with the Shanghai Composite up 0.4% and Hong Kong's Hang Seng Index adding 0.3% and moving to a new 25-month high. In Japan, the Nikkei 225 popped 0.6%, giving it a 1.3% gain so far for the week.
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