Dow manages to rise despite weak data

NEW YORK (AP) – The stock market managed a slender gain Thursday after traders shook off a pair of disappointing economic reports.

The Dow rose 24.71, or 0.2 percent, to 10,434.17. The last time the average had a three-day advance was April 19-21, shortly before the market began sliding on concerns about Europe’s economic problems. The Dow is up 243.28 over the past three days. The bulk of that gain came from an almost 214-point jump on Tuesday.

The S&P 500 index rose 1.43, or 0.1 percent, to 1,116.04, and the Nasdaq rose 1.23, or 0.05 percent, to 2,307.16.

The yield on the benchmark 10-year Treasury note fell to 3.19 percent from 3.27 percent late Wednesday.

Traders began buying late in the session, although without the vehemence that has marked other final-hour moves in recent weeks. The Dow Jones industrial average closed up about 24 points after falling 90 early in the day, and scored its first three-day advance since April. The Standard & Poor’s 500 and Nasdaq composite indexes both rose a little more than a point.

The late rebound following downbeat employment and manufacturing news suggests that investors may be getting more confident about the economic recovery, said Philip Orlando, the New York-based chief equity market strategist at Federated Investors.

“I think we’re starting to see a change in psychology,” Orlando said. “We’re beginning to ignore bad news and focusing on the bigger, better long term picture, and that’s encouraging.”

Still, investors were also looking for safe holdings, a sign that the economy is uncertain enough for them to hedge their bets. Treasury prices rose, pushing down interest rates, and gold closed at a record high.

The government said early in the day that the number of people seeking unemployment benefits rose unexpectedly last week. Initial claims for jobless benefits increased 12,000 to 472,000.

 That’s the highest level in a month and follows three straight weeks of declines. Economists had forecast another drop.

Show comments