Get breaking news alerts via email

Click here to manage your alerts
FILE - This July 15, 2013 file photo shows the New York Stock Exchange in New York. World stock markets slumped Wednesday June 25, 2014 after Wall Street's biggest decline in two weeks and ongoing violence in Iraq dampened sentiment. (AP Photo/Mark Lennihan, File)
Stocks edge higher despite weak economic data
Wall Street » Traders shake off downbeat government reports to give markets a boost.
First Published Jun 25 2014 09:05 am • Last Updated Jun 25 2014 10:49 am

New York • U.S. stocks were slightly higher in midday trading Wednesday, recovering a portion of the losses they posted the day before, as investors set aside two disappointing economic reports.

Monsanto jumped after the company announced a big stock buyback plan and posted earnings that beat analysts’ estimates. CBS and other broadcasters rose after the Supreme Court ruled in favor of them over a startup Internet company in a closely watched copyright case.

Join the Discussion
Post a Comment

KEEPING SCORE: The Dow Jones industrial average rose 24 points, or 0.1 percent, to 16,839 as of 12:20 p.m. Eastern time. The Standard & Poor’s 500 index rose four points, or 0.2 percent, to 1,954 and the Nasdaq composite rose eight points, or 0.2 percent, to 4,359.

BROADCAST BOOST: CBS and other TV companies advanced after the Supreme Court ruled that Aereo would have to pay them when it takes television programs from the airwaves and allows subscribers to watch them on smartphones and other portable devices. CBS rose $2.53, or 4 percent, to $61.37 and Walt Disney, which owns ABC, rose $1.18, or 1.4 percent, to $83.86. TV station owners also rose. Sinclair Broadcasting jumped $4.14, or 15 percent, to $33.38.

THE ECONOMY: In a revised estimate, the Commerce Department said the U.S. economy shrank at annual rate of 2.9 percent in the first three months of the year. Two-thirds of the downward revision reflected a decline in health care spending. The Commerce Department also said orders for long-lasting goods sank 1 percent in May as demand for military equipment fell sharply.

THE CONTEXT: Investors weren’t fazed by the government’s downward revision of GDP in the first quarter, noting that many investors have already attributed weakness in the U.S. during the first three months of the year to unusually harsh winter weather.

"We need to be looking toward earnings season next month, not at a report from three months ago," said Anastasia Amoroso, a global market strategist with J.P. Morgan Funds.

OIL EXPORTS: Two energy companies, Pioneer Natural Resources and Enterprise Products, rose following a Wall Street Journal report that said the U.S. government was loosening a longstanding ban by letting two companies sell a certain kind of unrefined American oil internationally. The newspaper said the Obama administration would allow foreign buyers to purchase a type of ultralight oil known as condensate, which can be turned into gasoline, jet fuel and diesel.

Pioneer rose $9.35, or 4 percent, to $231.00 and Enterprise rose 99 cents, or 1 percent, to $77.08.

FERTILE SOIL: Monsanto’s earnings fell more than 5 percent but its overall results still beat analysts’ estimates. The company, which sells corn and soybean seeds, also announced plans to spend up to $10 billion on buying its own stock. Monsanto rose $6.10 to $126.73.

story continues below
story continues below

RIPPED PAGES: Barnes & Noble jumped $1.26, or 6 percent, to $21.83 after the bookseller said it would become two publicly traded companies, one focused on retail bookselling and one on its Nook Media business, which sells electronic reading devices.

BONDS AND COMMODITIES: Government bond prices rose. The yield on the 10-year U.S. Treasury note, which falls when prices rise, dropped to 2.55 percent from 2.58 percent late Tuesday. Crude oil rose 16 cents to $106.19.

Copyright 2014 The Salt Lake Tribune. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Top Reader Comments Read All Comments Post a Comment
Click here to read all comments   Click here to post a comment

About Reader Comments

Reader comments on sltrib.com are the opinions of the writer, not The Salt Lake Tribune. We will delete comments containing obscenities, personal attacks and inappropriate or offensive remarks. Flagrant or repeat violators will be banned. If you see an objectionable comment, please alert us by clicking the arrow on the upper right side of the comment and selecting "Flag comment as inappropriate". If you've recently registered with Disqus or aren't seeing your comments immediately, you may need to verify your email address. To do so, visit disqus.com/account.
See more about comments here.
Staying Connected
Contests and Promotions
  • Search Obituaries
  • Place an Obituary

  • Search Cars
  • Search Homes
  • Search Jobs
  • Search Marketplace
  • Search Legal Notices

  • Other Services
  • Advertise With Us
  • Subscribe to the Newspaper
  • Access your e-Edition
  • Frequently Asked Questions
  • Contact a newsroom staff member
  • Access the Trib Archives
  • Privacy Policy
  • Missing your paper? Need to place your paper on vacation hold? For this and any other subscription related needs, click here or call 801.204.6100.