News Column

Wall Street pares weekly loss after jobless data, Coca Cola soars

February 6, 2014

U.S. stock markets were higher early Thursday, paring a weekly loss, after a decline in jobless claims and as investors took in another patch of corporate earnings, such as General Motors and Coca Cola. Investors also were taking in a European Central Bank news conference after the bank made no rate change. The ECB left key rates unchanged, and analysts are now looking toward potentially dovish statements at a press conference that's now underway. European stocks stayed firmer ahead of ECB chief Mario Draghi's news conference. Draghi also said the risks to euro area growth remain "on the downside," and that emerging-market turmoil may cloud the economic recovery. Earlier, the Bank of England , meanwhile, left policy unchanged and held its quantitative-easing program steady. In U.S. economic news, the number of people who applied for unemployment benefits fell by 20,000 to 331,000 last week, besting the consensus forecast figure of 337,000. In addition, the U.S. trade deficit widened more than expected, and productivity increased slightly less than anticipated. -The Dow Jones Industrial Average gained 0.84% to 15568.35 -The S&P 500 Index gained 0.76% to 1765.14 -The NASDAQ Composite gained 0.96% to 4050.07 . As of 10:20 a.m. ET Corporate earnings General Motors Co. also disappointed Wall Street with its results Thursday morning. Walt Disney gained 5.8 percent to $75.91 . The world's biggest entertainment company capitalized on the resurgence of its legendary animation studio with the hit film "Frozen" to post first-quarter profit that beat estimates. Twitter Inc. dropped sharply in premarket trading after earnings disappointed investors late Wednesday. Coca-Cola Co. advanced 1.4 percent after agreeing to buy 10 percent of Green Mountain Coffee Roasters Inc. for about $1.25 billion . Shares of Green Mountain Coffee Roasters surged 27% after the company announced a 10-year deal late Wednesday with Coca-Cola for an at-home cold-drink system. Costco Wholesale Corp. reported total same-store sales rose 4% in the four weeks to February 2 . Comparable U.S. sales were strongest, with a gain of 5%. Shares rose 2.5% in premarket.

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Source: Financial Markets

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