New York markets up on data

At midday on Thursday, New York equities markets were up after new data showed that the US economy was moderating but not falling off sharply when the Institute for Supply Management’s non-manufacturing index dropped more than had been expected in June. By mid-session, the Dow Jones Industrial Average was up 0.8 percent to 11,237.15, while the Nasdaq Composite and the S&P 500 had each added 0.4 percent, to 2,160.99 and 1,275.86 respectively.

In the retail sector, Costco declined by 2.7 percent to $55.29 on sales figures that were lower than expected in June. Elsewhere in the sector things were better, with Target up 1.4 percent to $48.94. TJX, which owns TJ Maxx and Marshall’s, added 3.5 percent to $23.00. Dollar General advanced by 4 percent to $14.39.

The energy sector was mixed. Peoples Energy was up 8.4 percent to $38.99 on the news that it is talking to WPS Resources about a merger. The news sent WPS down 4.5 percent to $47.92. In other mergers and acquisitions news, Peabody Energy added 5 percent after it said it would buy Australian coal company Excel coal. The Peabody announcement helped rival Arch Coal to advanced 2.3 percent to $43.22.

With the announcement that the Florida Supreme Court has upheld a lower court ruling that threw out a $145 billion damage award against the tobacco industry, tobacco stocks were up substantially. Reynolds American added 4.1 percent to $119.01, while Altria was up 6.6 percent to $78.19, its biggest one-day gain since November 2004.

Discuss this in the Finance Markets forums

Story link: New York markets up on data