The US markets closed higher on Thursday, as reports underlining general improvement in the economy offset a disappointing outlook from Hewlett-Packard Company, lifting the major indexes into positive terrain for the week. Hewlett-Packard Company fell the most after it projected second-quarter profit short of Wall Street’s average estimate. The Thursday’s economic data had the Federal Housing Finance Agency reporting that US home prices climbed 0.7% in the final month of 2011. And, the government offered further evidence of an improving labor market, as applications for jobless claims last week held at a near four-year low. Initial jobless claims were unchanged in the week ended February 18th, according to a report released by the US Labor Department. The report showed that jobless claims came in at 351,000, unchanged from the previous week's revised figure of 351,000, the lowest level since March of 2008.
The European Commission stated that the euro area is likely to see a mild recession this year. The Commission estimates real GDP in 2012 to contract 0.3% in the euro area and stated the inflation forecast for 2012 has been revised slightly upwards compared with the autumn, due to persistently high energy prices and increases in indirect taxes. It now stands at 2.3% in the EU and 2.1% in the euro area. However, German business sentiment improved more than estimated in February, according to the Munich-based Ifo institute.
The Dow Jones Industrial Average closed higher by 46.02 points, or 0.36 percent, at 12,984.70. The S&P 500 gained 5.80 points, or 0.43 percent, at 1,363.46, while the Nasdaq was up by 23.81 points, or 0.81 percent, at 2,956.98.
Indian ADRs closed mixed on Thursday, ICICI Bank was down 1.10%, Sterlite Industries was down 0.70% and Tata Motors was down 0.49%. On the flip side, Wipro was up 0.10% and MTNL was up 0.01%.