By Donna Kardos Yesalavich, MarketWatch
U.S. stocks make modest gains in wake of data
NEW YORK (MarketWatch) -- U.S. stocks were modestly higher Wednesday as data on new-home sales, consumer sentiment, consumer spending, personal income and weekly jobless claims all came in better than expected, although a disappointing durable-goods report limited investors' appetite for risky investments.
The Dow Jones Industrial Average (INDU 10,456, +22.53, +0.22%) was up 17 points, or 0.2%, at 10,451 in recent trading. Alcoa Inc. (AA 13.06, +0.14, +1.08%) was its strongest performer, up 1.1% as metals futures climbed. Consumer-discretionary stocks including Home Depot Inc. (HD 27.85, +0.29, +1.06%) and Walt Disney Co. (DIS 30.38, +0.15, +0.50%) also rose, gaining 1% and 0.7%, respectively.
However, the gains were held in check as Kraft Foods Inc. (KFT 26.91, -0.31, -1.14%) dropped 1%. The food giant meets Wednesday with labor representatives for Cadbury PLC's (CBY 53.89, -0.05, -0.09%) (UK:CBRY 809.00, +1.00, +0.12%) workers to discuss its plans for the U.K. confectioner.
The Nasdaq Composite (COMP 2,176, +6.48, +0.30%) added 0.3%. The Standard & Poor's 500 (SPX 1,108, +2.34, +0.21%) rose 0.2%, led by the materials and consumer-discretionary sectors. Its energy sector was the only category in the red recently, hurt by a drop in crude-oil futures. Halliburton Co. (HAL 29.75, -0.71, -2.33%) and Schlumberger Ltd. (SLB 64.44, -1.12, -1.71%) were among the energy sector's decliners.
In other markets, the dollar fell against the euro and the yen, while Treasurys were lower, with the 10-year note recently off 7/32 to yield 3.329%.
The action came after reports showed last week's initial jobless claims fell by more than predicted and spending by Americans bounced by in October as their incomes rose slightly more than expected.
In addition, new-home sales unexpectedly climbed 6.2% in October despite bad weather and uncertainty over a big tax credit for first-time buyers. Read more about housing data.
And while the University of Michigan/Reuters preliminary consumer sentiment index moved lower to 67.4 from 70.6 in October, it came in above the expected level of 66.8, as well as the preliminary reading of 66. Read about sentiment.
Still, the boost from those reports was limited as the Commerce Department said Wednesday demand for long-lasting goods unexpectedly fell in October, and a barometer of capital spending by businesses tumbled in another sign of the recovery's sluggishness. Read about durable goods.
Nevertheless, Eric Thorne, senior vice president at Bryn Mawr Trust, noted that the market's reaction to all the data Wednesday won't mean as much as its reaction next week, when volume comes back after the Thanksgiving holiday.
"Durable goods is somewhat of a concern but not a major concern right now, as it's really housing that we think will drive things and ultimately drive consumer confidence," Thorne added.
Still to come Wednesday is the Kansas City Fed Manufacturing Survey.
Among stocks in focus, Tiffany & Co. (TIF 43.48, +1.65, +3.95%) climbed 4.1% after the jeweler Wednesday raised its sales and earnings outlook for the year. Read about Tiffany's results.
