Business
US Stocks In Narrow Range After Price, Jobs Data
United States 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 Labour 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 Labour 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 Labour 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.
Even though it came up just short of expectations, it was the third straight week of declines, which provide evidence that layoffs are slowing and employers could start hiring new workers soon.
Initial claims have hovered around the 450,000 mark in recent weeks, which Gayle called a “tipping point” between employers adding or cutting jobs.
In other reports, a gauge of future economic activity rose at its slowest pace in 11 months, indicating the economy isn’t expected to surge anytime soon. The Conference Board’s index of leading indicators rose 0.1 percent in February, matching analysts’ expectations.
Economic data has largely been falling in line with expectations in recent weeks, leaving little room for quick gains or losses on very upbeat or discouraging reports. Stocks have been grinding higher over the past five weeks, with the Dow up about 825 points during that time. The S&P 500 and Nasdaq both closed Wednesday at their highest levels since 2008.
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.
In corporate news, FedEx Corp. said its fiscal third-quarter profit more than doubled. It also raised its full-year earnings forecast, which brought it in line with analysts’ expectations.
FedEx is considered a bellwether for the economy because of the variety of products it ships. Despite the upbeat earnings report, shares fell 44 cents to $89.36.
About five stocks rose for every four that fell on the New York Stock Exchange, where volume came to 220.5 million shares, compared with 264.1 million traded at the same point Wednesday.
Bond prices were little changed. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.65 percent from 3.64 percent late Wednesday.
Gold and oil both fell.
The Russell 2000 index of smaller companies fell 0.20, or less than 0.1 percent, to 683.78.
Overseas, Japan’s Nikkei stock average fell 1 percent. Britain’s FTSE 100 rose 0.1 percent, Germany’s DAX index rose 0.1 percent, and France’s CAC-40 gained 0.1 percent.
“Payment of tuition fees for undergraduate/postgraduate studies shall be subject to a maximum limit of $25,000.00 per semester,” the Manual states.
The expansion of international card limits also reflects growing confidence among lenders that foreign exchange liquidity has improved enough to support retail dollar transactions.
Speaking recently at the BusinessDay 14th Annual CEO Forum in Lagos, CBN Olayemi Cardoso, governor of the CBN said buying and selling activities now increasingly determine outcomes in the foreign exchange market, unlike in the past when market participants relied heavily on routine Central Bank interventions.
According to Cardoso, Nigeria’s net foreign exchange reserves have risen from just over $3 billion at the start of the reform programme to more than $40 billion, while gross reserves have climbed to about $52 billion, providing stronger confidence for investors and enabling the Central Bank to reserve interventions for periods of market stress rather than day-to-day liquidity management.
The restoration and expansion of international naira card spending limits are increasingly being seen as one of the clearest signs that the benefits of the CBN’s foreign exchange reforms are beginning to reach households, students and businesses making legitimate cross-border payments.
The Secretary-General and Chief Executive Officer, WEC, Dr Angela Wilkinson, disclosed this in a statement, last Thursday.
“Nigeria’s participation comes at a pivotal time as the country seeks to expand energy access, strengthen energy security, accelerate gas development and mobilise the capital required for industrialisation and sustainable economic growth.
“WEC Nigeria will convene leaders from across the energy ecosystem, apply the WEC’s globally recognised Energy Trilemma framework to Nigeria’s unique context, and promote evidence-based dialogue, practical collaboration and informed policymaking.
“It will also ensure that Nigerian and broader African perspectives contribute meaningfully to global energy conversations,” she said.
Wilkinson expressed confidence that Nigeria would play a significant leadership role at the World Energy Congress scheduled for Riyadh in April 2027 and beyond.
The statement also quoted the Chairman of WEC Nigeria, Isa, as describing the country’s participation as an opportunity to deepen national and African leadership within the global energy community through practical solutions tailored to regional development priorities.
He said the platform would promote collaboration across sectors and attract sustainable investments into Nigeria’s energy sector.
The Chief Executive Officer of WEC Nigeria, Wunti, was quoted in the statement as saying that the council would connect leadership, evidence and investment to build a secure, affordable and sustainable energy system.
“This system will be capable of driving economic growth and shared prosperity.”
According to him, the platform will also connect Nigerian institutions and businesses with international knowledge, technology, partnerships and investment opportunities through the World Energy Council’s global network.
Recall that WEC, founded in 1923, is the world’s oldest independent and impartial community of energy leaders and practitioners, advancing informed, collaborative and practical action across the global energy system.
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