Dow makes it eight straight, closing near the highs of the day. The Dow (DJI) ended the session with a gain of 45.50 points to 10,779.17. The S&P 500 (SPX) was flat at 1,165.83 with the Nasdaq (COMP) tacking on 2.19 points to 2,391.28. Volume remained on the light side with the NYSE trading below a billion shares and the Naz trading just over 2 billion. Market breadth was negative by a 13-to-17 and 12-to-15 margin on the Big Board and Naz respectively.
Inflation remains a non-issue as measured by the consumer price index. The CPI for February was flat with the core rate rising an as expected 0.1 percent. This puts the core rate up 1.3 percent year on year, showing that pricing pressures just aren't a major concern at the moment. The larger concern is the jobs market, which continues to struggle.
Jobless claims for the week ending March 13 fell by 5,000, but remain elevated at 457,000. In fact, the moving average rose by 5,000 to 471,250. This high of a level does little to support a view for an improving jobs market. At least leading indicators continue to point to strength with this index rising for the 11th straight month. Another positive in the economy has been the manufacturing sector and the Philly Fed Survey supported this view, rising 1.3 points to 18.9 with a reading above zero pointing to expansion. The employment component did rise to 8.4, up from 6.1 back in January.
Earnings news was positive Thursday with FedEx (FDX) and Nike (NKE) reporting strong results. FDX beat earnings estimates by 4-cents a share and confirmed guidance for the fourth quarter. However, it did lift its full year forecast and this helped push the stock higher by 3.20 percent to a price of $92.67, which is also a new high. It will be interesting to see how the company fares if oil prices continue to rise.
Nike shares also gained ground, rising 5.33 percent to $74.66, a new 52-week high. The active wear maker noted that demand has picked up, leading to a doubling in profits to $1.01 a share, which was 12-cents above expectations. Orders for showed and apparel are up 9 percent for delivery between March and July and this is a positive sign not only for Nike, but for the global economy.
There are no economic reports on tap Friday, but it is quadruple witching. However, this hasn't seemed to have much of an impact on trading this week, even volumes have been light despite this quarterly phenomenon.
Jody Osborne
Senior Writer & Options Strategist
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