USA: Dow, S&P 500 post 2014's biggest one-day percentage gain

Record ID: 187319

  • Title: USA: Dow, S&P 500 post 2014's biggest one-day percentage gain
  • Date: 6th February 2014
  • Summary: NEW YORK CITY, NEW YORK, UNITED STATES (FILE) (REUTERS) VARIOUS OF TWITTER FOURTH QUARTER FY2013 EARNINGS RELEASE
  • Embargoed: 21st February 2014 12:00
  • Keywords:
  • Location: Usa
  • Country: USA
  • Topics: Economy,Politics
  • Reuters ID: LVA22B53WZRSD2QRQ6T22O5UM0J0
  • Story Text: U.S. stocks rose the most so far this year on Thursday (February 6) after a drop in applications for unemployment insurance boosted confidence in the economy, and as Disney's results overshot expectations.
    The Dow Jones industrial average rose 188.30 points or 1.22 percent, to 15,628.53, the S&P 500 gained 21.79 points or 1.24 percent, to 1,773.43 and the Nasdaq Composite added 45.57 points or 1.14 percent, to 4,057.12.
    The rally comes ahead of the widely-followed payrolls report due Friday, which some are expecting to be affected by the extreme cold weather that has hit much of the United States.
    Initial claims for state unemployment benefits declined 20,000 last week to a seasonally adjusted 331,000. While the data has no direct bearing on January's employment report, as it falls outside the survey period, it bodes well for the jobs market and the overall economy.
    The recent soft data added to jitters about growth in China and a selloff in emerging market currencies and stocks. But a near 6 percent decline on the S&P 500 was seen by some as a buying opportunity, as earnings continue to grow.
    Walt Disney was the most recent bellwether to beat expectations as its profit topped estimates. Disney led gains on both the Dow industrials and S&P 500.
    On the downside, Twitter reported slow user growth, dimming hopes the company could sustain its quick expansion and sending shares down 24 percent to $50.03 (USD).
    Other economic data showed the U.S. trade deficit widened more than expected in December as exports fell, which could see the advance fourth-quarter growth estimate trimmed. Nonfarm productivity rose more than expected in the fourth quarter, but weak unit labor costs pointed to subdued wage inflation.
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