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.
Credit to Nigeria’s private sector rose to N83.26 trillion in June 2026 from N81.04 trillion in May, signifying a positive balance of N2.22 trillion month-on-month.
Year-on-year, the figure represents a nine per cent increase compared with the N76.13 trillion recorded in June 2025. The latest figures come as the CBN continues to balance efforts to control inflation with the need to support economic growth and expand credit to businesses.
The CBN data shows that credit to Nigeria’s private sector increased by approximately 2.74 per cent month-on-month between May and June 2026. Also, the CBN data noted that credit to the government fell slightly to N40.03 trillion from N40.38 trillion. Other assets, net, dropped to N10.76 trillion from N12.63 trillion.
The credit surge signifies sustained growth in lending to businesses and other private-sector borrowers during the month. The rise in private sector credit was recorded alongside an increase in net domestic credit, despite declines in credit to government and other assets.
Further analysis of the report says that compared with June 2025, private sector credit rose by about N7.13 trillion yea-on-year but net domestic credit increased by approximately N1.87 trillion during the month.
The CBN’s relatively tight monetary policy stance notwithstanding, more banks still loaded funds to the private sector within the period. The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) held its 306th meeting on July 20 and 21.
The Committee reviewed recent developments in the global and domestic economies, assessed emerging risks to the outlook and considered their implications for monetary policy and retained all rates.
The Committee decided to retain the Monetary Policy Rate at 26.5 per cent; the Standing Facilities Corridor around the MPR at +50/-450 basis points and retain the Cash Reserve Requirement (CRR) for Deposit Money Banks at 45.00 per cent, Merchant Banks at 16.00 per cent, and non-TSA public sector deposits at 75.00 per cent.
The MPC decision means that credit extension in the private sector will likely continue to rise because of rising confidence in the sector and calls by stakeholders for banks to invest in the private scetor instead of government securities.
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