US stocks end with moderate gains as data disappoints

Telecommunications lead sector gains and technology is hardest hit

US stocks ended with moderate gains on Thursday, 04 April 2013. Equities began the day on a mixed note with the S&P 500 climbing out of the gate while Nasdaq slipped into the red, where it spent the majority of today's session. Although the S&P saw early gains, the index notched its highs within the opening minutes, before sliding into negative territory. However, afternoon buying pulled the S&P out of the red, and the index ended with a gain.

For the day, the Dow ended higher by 55.76 points (0.38%) at 14,606.11. Nasdaq ended higher by 6.38 points (0.2%) at 3,224.98. S&P 500 ended higher by 6.29 points (0.4%) at 1,559.98.

Among the ten economic sectors, telecommunications led sector gains and technology were hardest hit.

Although the financial sector ended with firm gains, major components saw mixed performance. Goldman Sachs shed 0.3% while JPMorgan Chase rose 1.4%.

On the downside, weakness among major tech names like Apple, Google and International Business Machines weighed on the sector.

At the ECB's latest monthly news conference, Draghi acknowledged that the recovery in the second half of the year is still at risk of being thrown off course.

In news overnight, the Bank of Japan embarked on more monetary easing at its latest policy meeting. The move was not unexpected but the BOJ did act more aggressively to ease monetary policy than many expected. Also, at a press conference in Frankfurt, European Central Bank President Mario Draghi on Thursday said the ECB was prepared to reduce interest rates if the region's economy weakens further. Speaking after the ECB held its benchmark rate at 0.75%, Draghi said the central bank was considering various instruments to support growth as Europe's debt troubles persist into a fourth year.

The European Central Bank and Bank of England also hold monetary policy meetings on Thursday. Both the BOE and ECB left their interest rates and monetary policies unchanged. The Euro currency fell against the U.S. dollar following more downbeat economic news coming out of the European Union Thursday. German and French purchasing managers' data came in weaker than expected. Most agree the Euro zone is presently in a full-blown economic recession.

The U.S. dollar index, which weighs the strength of the dollar against a basket of six other currencies, fell by 0.15% on Thursday.

Looking back at today's economic data at Wall Street, the initial claims level jumped to 385,000 for the week ending 30 March from 357,000 for the week ending 23 March 2013. The consensus expected the initial claims level to fall to 345,000.

The increase in claims is not the result of a sudden softening in labor market conditions. The seasonal adjustments used by the DOL have a difficult time accounting for the Easter holiday. Because the Easter holiday falls on a different date each year, the seasonal adjustments from one year to the next cannot adequately explain seasonal employment fluctuations from Easter-related hiring and firing.

Advancers outran decliners on the New York Stock Exchange, where 644 million shares traded. Composite volume approached 3.2 billion.

Indian ADRs ended mostly lower on Thursday. In the IT space, Infosys was down 2% and Wipro was down 1%. In the Banking space, HDFC Bank was down 1.1% and ICICI Bank was down 2.5%. In the Telecom space, Tata Communication was down 0.6%. In other space, Tata Motors was up 0.4%, Dr Reddys was up 2.22% and Sterlite was down 2.7%.

Tomorrow morning will be busy in terms of economic news. March nonfarm payrolls, nonfarm private payrolls, unemployment rate, hourly earnings, average workweek, and February trade balance will all be reported at 8:30 ET. The busy day will be topped off by a 15:00 ET release of February consumer credit.

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