Thursday the US stock indices closed in different directions.
The Dow Jones Industrial Average declined by 2.42 points, or 0.02%, to 11370.06 points. The Nasdaq Composite rose by 7.51 points, or by 0.29, to 2616.67 points, having reached the highest closing level since December 31, 2007. The S&P 500 grew by 4.72 points, or by 0.38%, to 1223.00 points.
McDonald’s stocks led the falling, having fell by 1.4% after in Tuesday the company announced that its comparable sales increased less than expected. DuPont shares dropped by 1.2%, since the company has decreased its profit forecast for 2011 more considerably than the analysts expected. Bank of America stocks soared 5.4% and J.P. Morgan quotes edged up 1.4%. Cisco shares surged by 1.8%, and the securities of Verizon Communications advanced by 1.8%. The slight fluctuations of the major stock indices were caused by the fact that the market took a pause after earlier this week the Dow and S&P 500 reached their highest levels since September 2008. The latest economic data provided investors with controversial economic picture. Last week initial jobless claims fell by more than expected, but the data for the previous week were revised slightly upward. The US wholesale inventories rose more than expected in October, whereas the strong increase in sales also signaled the support for the economy. Moreover, the paces of the inventories’ growth still exceed the boost of sales. Meanwhile the investors kept a close eye on the bond market after the falling of demand in recent days led to the sharp advance in yields.
However, on Thursday the treasuries were in great demand. During an auction in 30-year bonds 13 billion dollars were received. Investors expect that this will exert “stabilizing effect” on the bond market.