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Overnight Markets: Wall Street snaps five-day losing streak on jobless data
by Himanshu Singh on Sep 27, 2013 at 03:48
US stocks advanced on Thursday, with the S&P 500 and Dow Jones snapping five-day losing streaks, as an unexpected decline in jobless claims overshadowed concern that a budget impasse could hurt economic growth.
The Dow Jones industrial average was up 55 points, or 0.36%, at 15,328. The Standard & Poor's 500 Index was up six points, or 0.35%, at 1,699. The Nasdaq Composite Index was up 26 points, or 0.7%, at 3,787.
Shares gained after data showed initial claims for state unemployment benefits fell last week near a six-year low, the Labour Department said, which could bode well for employers adding workers to their payrolls.
In a separate report, the Commerce Department said the economy expanded at faster pace in the second quarter from the previous three months, with gross domestic product rising at a 2.5% annualised rate.
In Washington, House Republicans refused to give in to President Barack Obama's demands for straightforward bills to keep the government running beyond 30 September and to increase borrowing authority to avoid a historic default.
In corporate news, Bed Bath and Beyond (BBBY.O) rose 4.5% a day after it reported a jump in second-quarter profit.
After the bell, shares of Nike Inc (NKE.N) rose 4.1% following the release of its results.
During regular trading, shares of J.C. Penney Co Inc (JCP.N) gained 2.9% after CNBC reported its chief executive told investors he does not see the need to raise cash this year. But after the close, the stock slid 5.5% after it said it had begun a public offering of 84 million shares.
On the negative side, Eli Lilly (LLY.N) lost 3% after its experimental cancer drug failed to improve survival among breast cancer patients without their cancer worsening in a late-stage trial.
Hertz Global (HTZ.N) fell 16.1% after the car rental company cut its full-year forecast.
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