The US markets closed higher on Thursday, with Nasdaq Composite rising for the sixth consecutive session, its longest winning streak in two months. A disappointing batch of economic data and lackluster earnings didn’t keep investors from buying stocks. The number of Americans who applied to receive unemployment benefits rose last week and the gradual decline in claims since last year appears to have halted, perhaps a sign the US labor market is not healing as fast as it was toward the end of 2013. Initial jobless claims climbed by 8,000 to a seasonally adjusted 339,000 in the seven days ended February 8. The average of new claims over the past month, usually a more reliable gauge than the weekly number, increased by 3,500 and stood at 336,750. The number of people seeking benefits is seen as a good gauge of how many layoffs are occurring in the economy.
Besides, sales at US retailers fell sharply in January and the final two months of 2013 turned out weaker than initially reported, offering more evidence the economy may have softened toward the end of the year. Sales tumbled a seasonally adjusted 0.4% last month. January sales fell in most categories, led by a 2.1% decline in autos. Sales at US auto showrooms slipped to an annual pace of 15.2 million in January from 15.3 million in December and 16.3 million in November. Consumers are the main source of economic growth and retail sales account for a large slice of their spending. The drop in sales in January and December suggests consumers still aren’t willing to splurge, a potentially worrisome sign for businesses and the broader economy. Separately, inventories at US businesses rose 0.5% in December while on the other hand the business sales rose 0.1% in December.
The Dow Jones Industrial Average added 63.65 points or 0.40 percent to 16,027.59, the S&P 500 was up by 10.57 points or 0.58 percent to 1,829.83 and Nasdaq gained 39.38 points or 0.94 percent to 4,240.67.
Indian ADRs closed mostly in red on Thursday; Dr. Reddy’s Lab was down 0.70%, HDFC Bank was down 0.50% and ICICI Bank was down 0.38%. On the other hand, Tata Motors was up 0.28% and Wipro was up 0.10%.