New York – Wall Street extended its rally Thursday as robust earnings at Exxon Mobil Corp. and Aetna Inc. helped ground investors as they tried to reconcile divergent economic data.
The Dow Jones industrials, lifted in part by component Ex xon Mobil, had their fourth consecutive record close. The generally upbeat earnings reports of the past two weeks have helped power the blue chips as well as the rest of the stock market. Thursday’s batch of earnings also helped investors digest a pair of government reports that suggested an economic soft landing might be harder to achieve.
The market was initially inspired by Commerce Department durable-goods data that indicated capital spending jumped by the most in more than six years. But stocks then fell on a report from the department that new-home prices plunged at the steepest pace since 1970.
Investors were particularly wary after the Federal Reserve said Wednesday it remains concerned about inflation even as the economy is slowing.
“Things on the horizon are becoming less and less visible,” said Hugh Moore, a partner with portfolio manager Guerite Advisors.
He said the economic reports point to a “slow, grinding deceleration,” but for the moment stock investors are trading on optimism. This contributed to Thursday’s erratic trading – stocks spent most of the session in negative territory before a late-day rally.
Further direction about the economy will come with today’s release of gross-domestic-product estimates.
The Dow rose 28.98, or 0.24 percent, closing at 12,163.66. The Dow also reached a new trading high Thursday, 12,167.02.
Broader stock indicators also advanced. The Standard & Poor’s 500 index rose 6.86, or 0.5 percent, to 1,389.08. The Nasdaq composite index added 22.51, or 0.96 percent, to 2,379.10.
