NEW YORK (AFX) - U.S. stocks traded higher after a three-session decline, but gains were modest as a solid holiday season for retailers and a fresh bounce in the dollar were tempered by caution ahead of Friday's key December employment report. The Dow Jones Industrial Average was last up 11 points, at 10,609. Within the benchmark index, Wal-Mart Stores Inc edged up 0.2 percent after it posted in-line same-store sales for December. Alcoa Inc rose 1.4 percent after brokerage Smith Barney said pessimism about the outlook for the maker of aluminum products was "overdone." The Nasdaq Composite Index climbed 6 points, to 2,097. In the first three sessions of 2005, the tech-rich index has shed nearly 4 percent. The S&P 500 Index added 1.5 points, to 1,185.33.
The market is in vacuum ahead of Friday's employment report and the start of the fourth quarter earnings season, according to Jim Paulson, chief investment officer, at Wells Capital Management. "Does anyone really want to take a stand ahead of tomorrow's job numbers," said Paulson. "People are going to make up their minds not only on that (the employment report), but will also be looking ahead to the next two weeks when the earnings numbers really start coming in." In the interim, said Paulson, stock gains are being capped by investors locking in profits made over the last two months. Jobless claims jump Investors reacted with equanimity to a sharper-than-expected rise in weekly jobless claims ahead of Friday's key employment report. Claims during this period are traditionally skewed by seasonal factors, when thousands of workers are hired for temporary jobs and are then let go. The timing of the hiring and firing can warp the weekly data. "It is best to ignore these data. They will revert to trend over the next few weeks," said Ian Shepherdson, chief U.S. economist, at High Frequency Economics. There was better news for investors on the currency markets, as the dollar continued to strengthen against the euro and other major currencies. While this will bring a degree of relief to exporters outside of the U.S., it's going to do little to close the trade deficit," said Wayne Roworth, senior foreign-exchange dealer with CMC Group in New York. Traders were buying the greenback in anticipation a strong December employment report could signal higher U.S. interest rates. While this will bring a degree of relief to exporters outside of the U.S., it's going to do little to close the trade deficit," said Wayne Roworth, senior foreign-exchange dealer with CMC Group in New York. Crude-oil prices edged higher in morning trading. Crude for February delivery was up 26 cents at $43.65 a barrel in New York. On the bond market, U.S. treasurys dipped slightly in early trading. The benchmark 10-year note was last down 1/32 at 99 23/32, with its yield standing at 4.28 percent. Turning back to the broader market for equities, advancers outpaced decliners by a 16 to 12 score on the New York Stock Exchange, and by a 15 to 10 margin on the Nasdaq. Volume was 271 million on the Big Board, and 468 million on the Nasdaq. Holiday season mostly delivers for retailers December was a month of contrasting fortunes for retailers, with many stores seeing a surge in sales, but there were some that were forced to issue profit warnings as sales fell or came in below expectations. Leading the pack, Wal-Mart reported a 3 percent rise in sales at stores open more than a year, known as same-store sales. The rise was in line with company expectations, but marks a slowdown in growth from year-ago levels when it rang up an increase of 4.3 percent in same-store sales in December. For January, the Bentonville, Ark. Company is forecasting same-store sales growth of two to four percent. Wal-Mart shares ticked up 0.6 percent to $53.61. Among the more impressive retail performances, Costco Wholesale posted a 9 percent jump in same-store sales, helped by higher gasoline prices and positive foreign exchange factors. Costco shares climbed 2 percent in morning trading. JC Penney shares climbed 0.8 percent, to $41.01 after the department store chain said it expects to hit the high end of its current earnings forecast range for the fourth quarter. Other big winners include American Eagle Outfitters , Chico's , Abercrombie & Fitch , Children's Place , Neiman Marcus . It was a more difficult holiday season for discount retailer and Wal-Mart rival, Target . The Minneapolis-based company said it expects fourth quarter earnings to come in below current analyst expectations. Target posted a 5.1 percent rise in same-store sales in December, but this was driven in part by higher levels of discounting. Target shares fell 2.1 percent to $50.21 in early trading. Elsewhere, there were profit warnings from Pier 1 , TJX Cos , Charming Shoppes , Cost Plus and Zale Corp . More telecom consolidation? In other equity news, shares of Western Wireless Corp. surged 18 percent after a published report said wireless carrier Alltel is in advanced talks to buy Western Wireless Corp. in a deal valued at around $4 billion. Alltel shares fell 3.4 percent, to $56.05 in morning trading. This story was supplied by CBSMarketWatch. For further information see www.cbsmarketwatch.com.
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The market is in vacuum ahead of Friday's employment report and the start of the fourth quarter earnings season, according to Jim Paulson, chief investment officer, at Wells Capital Management. "Does anyone really want to take a stand ahead of tomorrow's job numbers," said Paulson. "People are going to make up their minds not only on that (the employment report), but will also be looking ahead to the next two weeks when the earnings numbers really start coming in." In the interim, said Paulson, stock gains are being capped by investors locking in profits made over the last two months. Jobless claims jump Investors reacted with equanimity to a sharper-than-expected rise in weekly jobless claims ahead of Friday's key employment report. Claims during this period are traditionally skewed by seasonal factors, when thousands of workers are hired for temporary jobs and are then let go. The timing of the hiring and firing can warp the weekly data. "It is best to ignore these data. They will revert to trend over the next few weeks," said Ian Shepherdson, chief U.S. economist, at High Frequency Economics. There was better news for investors on the currency markets, as the dollar continued to strengthen against the euro and other major currencies. While this will bring a degree of relief to exporters outside of the U.S., it's going to do little to close the trade deficit," said Wayne Roworth, senior foreign-exchange dealer with CMC Group in New York. Traders were buying the greenback in anticipation a strong December employment report could signal higher U.S. interest rates. While this will bring a degree of relief to exporters outside of the U.S., it's going to do little to close the trade deficit," said Wayne Roworth, senior foreign-exchange dealer with CMC Group in New York. Crude-oil prices edged higher in morning trading. Crude for February delivery was up 26 cents at $43.65 a barrel in New York. On the bond market, U.S. treasurys dipped slightly in early trading. The benchmark 10-year note was last down 1/32 at 99 23/32, with its yield standing at 4.28 percent. Turning back to the broader market for equities, advancers outpaced decliners by a 16 to 12 score on the New York Stock Exchange, and by a 15 to 10 margin on the Nasdaq. Volume was 271 million on the Big Board, and 468 million on the Nasdaq. Holiday season mostly delivers for retailers December was a month of contrasting fortunes for retailers, with many stores seeing a surge in sales, but there were some that were forced to issue profit warnings as sales fell or came in below expectations. Leading the pack, Wal-Mart reported a 3 percent rise in sales at stores open more than a year, known as same-store sales. The rise was in line with company expectations, but marks a slowdown in growth from year-ago levels when it rang up an increase of 4.3 percent in same-store sales in December. For January, the Bentonville, Ark. Company is forecasting same-store sales growth of two to four percent. Wal-Mart shares ticked up 0.6 percent to $53.61. Among the more impressive retail performances, Costco Wholesale posted a 9 percent jump in same-store sales, helped by higher gasoline prices and positive foreign exchange factors. Costco shares climbed 2 percent in morning trading. JC Penney shares climbed 0.8 percent, to $41.01 after the department store chain said it expects to hit the high end of its current earnings forecast range for the fourth quarter. Other big winners include American Eagle Outfitters , Chico's , Abercrombie & Fitch , Children's Place , Neiman Marcus . It was a more difficult holiday season for discount retailer and Wal-Mart rival, Target . The Minneapolis-based company said it expects fourth quarter earnings to come in below current analyst expectations. Target posted a 5.1 percent rise in same-store sales in December, but this was driven in part by higher levels of discounting. Target shares fell 2.1 percent to $50.21 in early trading. Elsewhere, there were profit warnings from Pier 1 , TJX Cos , Charming Shoppes , Cost Plus and Zale Corp . More telecom consolidation? In other equity news, shares of Western Wireless Corp. surged 18 percent after a published report said wireless carrier Alltel is in advanced talks to buy Western Wireless Corp. in a deal valued at around $4 billion. Alltel shares fell 3.4 percent, to $56.05 in morning trading. This story was supplied by CBSMarketWatch. For further information see www.cbsmarketwatch.com.
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