breaking news

Springfield police want public’s help to solve shooting, hit-and-run

Earnings, economy, Fed lift stocks; Dow at record


STEVE ROTHWELL

AP Markets Writer

The Dow Jones industrial average closed at an all-time high Wednesday as the good narrowly outweighed the bad for the stock market.

After investors assessed a series of company earnings reports, the latest move from the Federal Reserve and an unexpectedly weak reading on first quarter economic growth, the stock market ended with its third straight day of gains.

Stocks started the day lower after the government reported that the U.S. economy stalled in the first three months of the year as winter storms chilled business activity. The Commerce Department said growth slowed to a barely discernible 0.1 percent annual rate in the January-March quarter, less than the rate of 1.1 percent forecast by economists, according to FactSet.

The market’s reaction to the report was muted because most investors expect the slowdown to be temporary as growth rebounds with warmer temperatures.

“Most people, including us, expected March to have been the strongest month of the first quarter” and that growth will continue to pick up, said Sean Lynch, global investment strategist for Wells Fargo Private Bank. “That’s an OK environment for the market.”

The Standard & Poor’s 500 index rose 5.62 points, or 0.3 percent, to 1,883.95. The Dow Jones industrial average rose 45.47 points, or 0.3 percent, to 16,580.84, four points above its previous record set Dec. 31. It was the first day the index closed in positive territory for the year.

The Nasdaq composite rose 11.01 points, or 0.3 percent, to 4,114.56.

Some solid earnings reports and corporate deal news helped offset the weak economic report, and by midday stocks had eked out small gains.

More than 60 percent of S&P 500 companies have reported first-quarter earnings. Analysts currently expect earnings to grow by 1.7 percent in the period, according to S&P Capital IQ data. That compares with growth of almost 8 percent in the fourth quarter and 5.2 percent in the same period a year ago.


Reader Comments ...


Next Up in Business

BBB warns job seekers about employment scams
BBB warns job seekers about employment scams

Finding a job can be a challenging task, and scammers know it. Better Business Bureau warns job seekers that not all job postings are legitimate. Some may misrepresent services, offer outdated or fictitious jobs or charge high upfront fees for services that may not lead to a job. Last year, there were over 1,300 complaints across the U.S., Canada and...
Parents get late start to back-to-school shopping
Parents get late start to back-to-school shopping

Nearly a quarter of parents haven’t started shopping for back-to-school items yet, and national retailers are feeling the impact. Of parents surveyed last week, only 13 percent had completed all their shopping, and 23 percent had not started at all, according to the National Retail Federation, which forecast families will spend $83.6 billion...
5 new flight options out of Cincinnati and Dayton airports
5 new flight options out of Cincinnati and Dayton airports

Air carriers have added dozens of new flights out of the Cincinnati/Northern Kentucky International Airport and the Dayton International Airport in the past year. Cincinnati’s airport just announced that WOW air will add services — bringing discount, international flights to travelers in Southwest Ohio. The low-cost transatlantic airline...
Starbucks introduces their own sushi burrito
Starbucks introduces their own sushi burrito

The coffee giant is at it again, this time jumping onto the sushi burrito bandwagon. Starbucks calls it a Chicken Maki Roll and lists it under sandwiches. The company has labeled the new concoction “a classic California chicken burrito with a twist,” according to the corporation’s press release. Unfortunately for us in Ohio...
Crowds line up in Springfield stores for $700M Powerball jackpot
Crowds line up in Springfield stores for $700M Powerball jackpot

With a near-record Powerball jackpot worth $700 million, a steady stream of customers filed into the Plum Food Mart in Springfield and other stores across Clark and Champaign counties on Wednesday. Plum Food Mart’s owners expected progressively bigger crowds as the clock ticked toward Wednesday night’s drawing, and the business planned...
More Stories