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US markets bounce back on Facebook deal ignoring mixed data

21 Feb 2014 Evaluate

The US markets bounced back on Thursday ignoring the mixed economic data and rejoicing the Facebook deal where the company announced a $19 billion bid for mobile-messaging startup WhatsApp. Market had weakened in early deal on downbeat manufacturing report from the Philadelphia Federal Reserve, which dropped sharply to a reading of negative 6.3 in February from a 9.4 reading in January. However, the traders blamed weak US economic data on unusually bad winter weather. On the other hand the Conference Board’s Leading Economic Index for the US increased 0.3 percent in January to 99.5, suggesting the world's largest economy did not lose much momentum despite severe winter weather.

Also, the Markit Economics preliminary index of US manufacturing increased to 56.7 in February, while the US Labor Department revealed that initial jobless claims fell 3,000 to 336,000 for the week ended February 15. This followed an unrevised reading of 339,000 in the previous week.

The Dow Jones Industrial Average gained 92.67 points or 0.58 percent, to 16,133.23. The Nasdaq Composite was up by 29.59 points or 0.68 percent, to 4,267.55 and the S&P 500 rose 11.03 points or 0.60 percent, to close at 1,839.78.

The Indian ADRs closed mostly in green on Thursday, ICICI Bank was up by 0.35%, Wipro was up by 0.09%, Tata Motors was up by 0.48%, Infosys was up by 0.92%, while HDFC Bank ended lower by 0.07%.

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