After Market: Optimistic Fed Report Sends S&P to Another High


The S&P 500 edged up to another record high Wednesday, but the market remained locked in a narrow trading range. The major averages have been remarkably steady over the past two weeks, even though that could change with the release Friday of the government's monthly unemployment report.

ADP said Wednesday that private sector hiring slowed a bit in May from April. But the Federal Reserve's Beige Book report showed growth picking up across the country. The Dow Jones industrial average (^DJI) rose 15 points, the Standard & Poor's 500 index (^GPSC) added 3, and the Nasdaq composite (^IXIC) gained 17 points.

Most big name tech and Internet stocks moved higher. Apple (AAPL) rose 1½ percent, while Facebook (FB) and Netflix (NFLX) both gained about 1 percent.

But Pandora (P) shareholders are singing the blues. The music streaming company's stock edged lower as federal investigators look at the royalty rates the company pays to songwriters. Higher rates could cut into profits. Pandora shares are still up 70 percent from a year ago, but well off their highs from back in March.

Federal action helped light a fire under solar stocks. The Commerce Department proposed new import duties on solar panels made in China. SunPower (SPWR) rose 7 percent, SunEdison (SUNE) rose 6 and First Solar (FSLR) gained 4 percent.

And General Motors (GM) jumped another 3½ percent one day ahead of the release of an independent report on the fiasco over the company's faulty ignition switches. It's expected to cast a harsh light on the GM, but say that CEO Mary Barra did not know the extent of the problem prior to taking the top job.

Elsewhere, a couple of firms got a boost from brokerage upgrades. Newell Rubbermaid (NWL) rose 4½ percent as Morgan Stanley upped its rating to "overweight."

Under Armour (UA) gained 5 percent as Jefferies raised its rating to "buy."

But Coach (COH) fell 2½ percent on a Sterne Agee downgrade to "neutral." Coach shares have lost a third of their value over the past year.

Finally, Walgreen (WAG) rose 4 percent as a key measure of sales topped expectations.

What to Watch Thursday:
  • The Labor Department reports weekly applications for unemployment benefits at 8:30 a.m. Eastern time.
  • General Motors (GM) is scheduled to release its investigation into the delayed recall of small cars with defective ignition switches, blamed for at least 13 deaths, at 9 a.m.
  • Freddie Mac reports weekly mortgage rates at 10 a.m.
These major companies are scheduled to release quarterly financial statements:
  • Cooper Cos. (COO)
  • Diamond Foods (DMND)
  • J.M. Smucker (SJM)
  • Men's Wearhouse (MW)
  • Navistar International (NAV)
  • Vail Resorts (MTN)
  • Vera Bradley (VRA)
  • Verifone Systems (PAY)
-Produced by Drew Trachtenberg.

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do you not even understand who it is you are paying your hard work and labor to?it's not the federal government,it's the bankers,it's wall street,it's those drunk on power.the us taxpayers have a constitutional right to uphold and protect their constitution which does not include anything about a PRIVATE CENTRAL BANK TAXING ITS CITIZENS and taking a cut of everything,america should nationaltze the federal reserve,arrest the people behind it,and take back the money!

June 05 2014 at 12:54 PM Report abuse rate up rate down Reply

Liberals retirement accounts won't mean very much ; if Obama stumbles into WWIII.....
without Reagan's SDI.....
Also; in order to pay the Chinese off; Obama may have to seize everybody's 401k and IRAs and Gold;
just like Franklin Roosevelt did the savings accounts and gold in 1933.....
Don't worry , you will get 5 cents back on the dollar and you'll be able to buy gold again in the year 2054 ( just like you could starting in 1973 ! ).

June 05 2014 at 12:28 AM Report abuse -1 rate up rate down Reply

Sheep being led to the slaughter. Russia and China now trading with their own currencies. Just wait until the dollar is meaningless and the Great Depression will look harmless in comparison. Less income being made, higher prices abound, more labor and materials made out of country. Virtually becoming a welfare state. A matter of time.

June 04 2014 at 7:17 PM Report abuse +2 rate up rate down Reply
1 reply to Mike's comment

For heaven's sake, Mike, why are you wasting time on internet commentary when you could be on the first flight to the good life in Russia or China? When you do arrive and establish yourself please drop a note or two. Even better yet, publish a guidebook to "Living the Good Life" (outside of the United States)

June 04 2014 at 7:35 PM Report abuse -2 rate up rate down Reply
1 reply to jpfmtka's comment

Perhaps you should lead the way doll.

June 04 2014 at 10:53 PM Report abuse -2 rate up rate down


June 04 2014 at 6:59 PM Report abuse +1 rate up rate down Reply

Way to go President Obama, tough job for you to clean up the mess of the bush jr administration.

June 04 2014 at 6:14 PM Report abuse rate up rate down Reply
2 replies to toosmart4u's comment

Obama did what?? Nice in that families are making 10% LESS income than when his "reign" began, prices are up for virtually everything, more products produced off shore, businesses limping along in the small company arena, welfare and handouts rising at staggering rates, illegals receiving more benefits than life long citizens, on and on. Some great job!

June 04 2014 at 7:20 PM Report abuse rate up rate down Reply
1 reply to Mike's comment

Sey darling perhaps you should lay off the sauce and try and get back on the wagon dear.

June 04 2014 at 10:57 PM Report abuse -2 rate up rate down

Not to smart you mean the mess that the democrat controlled House and Senate during the latter part of the Bush years created darling.

Such a shame that you always get things backwards dear.

June 04 2014 at 10:56 PM Report abuse -2 rate up rate down Reply