Stocks were in search of direction on Thursday as traders weighed disappointing earnings from ExxonMobil, better-than-expected jobs data and the ongoing U.S. debt debate.
Today's Markets
As of 9:32 a.m. ET,
the Dow Jones Industrial Average climbed 14 points, or 0.14%, to 12,319, the S&P 500 rose 1.6 points, or 0.12%, to 1,306 and
the Nasdaq Composite gained 1.8 points, or 0.04%, to 2,766.
The number of individuals applying for first-time jobless claims fell to 398,000 last week from 422,000, better than the 415,000 economists forecast. Jobless claims had been stuck above the 400,000-mark for weeks, which coupled with a dismal June jobs report, has many economists concerned that job growth is moderating.
Later in the morning, markets are expected to get a report on pending home sales, which are expected to have fallen 2% in June after soaring 8.2% the prior month.
Headlines from Washington, D.C. have captivated
Wall Street in recent days as lawmakers have struggled to come to an agreement on how to begin cutting the deficit while also raising the debt ceiling.
The Republican-controlled House of Representatives is expected to vote on Speaker John Boehner's bill late on Thursday. The plan was revised on Wednesday after a score by the Congressional Budget Office found it would provide less spending cuts than expected. The vote is expected to be tight, with most Democrats likely to vote against and divisions within the GOP.
Even if the measure passes the House, it is likely to face strong opposition in the Senate, where the
Democratic Party has control.
Economists and government officials have warned repeatedly that if the debt ceiling isn't raised, there could be severe consequences for the already fragile global recovery. Indeed, ratings companies have warned that they may downgrade the country's debt rating if lawmakers fail to craft a credible deficit-reduction bill.
While this week's focus has been on the debt debate on Capitol Hill, several companies are posting earnings this week.
ExxonMobil (
XOM) unveiled profits of $2.18 per share, missing the Wall Street's view of $2.33. The largest U.S. company by market capitalization posted revenue of $125 billion, beating estimates of $121 billion.
DuPont (
DD) posted earnings excluding one-time costs of $1.37 a share, topping analysts' forecast of $1.34 a share on strong growth across several of its product lines. The chemical giant also boosted its full-year 2011 profit forecast to a range of $3.90 to $4.05 per share, from $3.65 to $3.85.
Energy markets drifted higher after falling in the prior session.
Light, sweet crude climbed 9 cents, or 0.09%, to $97.49 a barrel. Wholesale RBOB gasoline jumped 3 cents, or 0.88%, to $3.17 a gallon.
Prices at the pump continue heading higher. A gallon of regular costs $3.71 on average nationwide, up from $3.55 last month, and well higher than the $2.75 drivers paid last year, according to the AAA Fuel Gauge report.
In currencies, the euro fell 0.6% against the U.S. dollar, while the greenback gained 0.26% against a basket of world currencies.
Gold has gotten a boost from the uncertain economic and political picture, hitting record highs several times in the last two weeks. The precious metal recently gained $1.80, or 0.11%, to $1,619 a troy ounce. Silver fell 31 cents, or 0.77%, to $40.26 a troy ounce.
Corporate News
Cisco Systems (
CSCO) shares got a boost after Goldman Sachs raised its view to "buy" from "neutral."
Bristol-Myers Squibb (
BMY) posted profits excluding one-time items of 56 cents a share, which topped estimates by a penny. The company also reported better-than-expected sales of $5.4 billion, compared with the $5 billion estimate, and raised its full-year profit view.
Foreign Markets
The English FTSE 100 fell 0.74% to 5,813, the French CAC 40 slid 1.3% to 3,685 and the German DAXslumped 1.6% to 7,139.
In Asia, the Japanese Nikkei 225 dropped 1.5% to 9,901 and the Chinese Hang Seng rose 0.13% to 22,570.
