Closing Bell: Stocks Make Gains for 3rd Straight Day on Upbeat Economic Data

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Stocks continued to make gains Thursday, pushed higher by positive news about the nation's economy. Investors also reacted positively to assurances by two Federal Reserve officials who stressed that the Fed's bond purchase program won't slow until the economy strengthens further.

The Dow industrials (^DJI) rose 115 points, adding a third day to its streak of triple-digit gains, to close at 15,025. The S&P 500 (^GPSC) advanced nearly 10 points, to 1,613, and the Nasdaq (^IXIC) added almost 26 to end at 3,402.

The number of Americans filing new claims for unemployment benefits dropped last week by 9,000 to a seasonally adjusted 346,000, in line with the recent moderate pace of job growth, according to the Labor Department.

Consumers picked up the pace of their spending last month. The Commerce Department reported consumer spending rose 0.3 percent in May, the fastest rate in three months. Incomes also rose, by 0.5 percent, for their biggest gain since February.

Sales of existing homes jumped nearly 7 percent in May as homebuyers moved to lock in low mortgage rates. The National Association of Realtors said the number of signed contracts jumped last month to its highest level since December 2006.

Mortgage-buyer Freddie Mac reported that the average rate for a 30-year fixed mortgage surged this week to 4.46 percent, the highest in two years. Though mortgage rates remain low by historical standards, the recent rise in rates has had an impact on buyers' wallets. A homebuyer who locked in a 3.35 percent rate in early May on a $200,000 mortgage pays $881 a month, according to Bankrate.com. Another buyer who gets a 4.46 percent rate this week on a mortgage of the same amount will pay $1,008 a month.

Stocks in the news Thursday:
  • Winnebago Industries (WGO) rose fractionally after reporting net income nearly doubled in the third quarter on strong sales of its RVs. For the period ending June 1, Winnebago earned 27 cents a share, compared 13 cents a share a year ago.
  • The fallout continues from Paula Deen's admission that she once used racial slurs. Target (TGT) is cutting ties with the celebrity cook. Meanwhile, diabetes-drug maker Novo Nordisk (NVO) said that it and Deen have "mutually agreed to suspend our patient education activities for now." On Wednesday, Walmart Stores (WMT) announced it was severing ties with the Food Network host.
  • In IPO news, shares of CDW Corp. (CDW) rose 8 percent in the information-technology company's first day of trading on Nasdaq.
  • U.S. regulators have charged MF Global, along with former Chief Executive Jon Corzine and former Assistant Treasurer Edith O'Brien, for the failed futures brokerage's misuse of customer funds and related violations.
  • ConAgra Foods (CAG) reported a quarterly profit, reversing a year-ago loss, helped by its acquisition of Ralcorp Holdings. In its fiscal fourth quarter, the maker of Chef Boyardee pasta said it earned 45 cents a share, compared to a net loss of 21 cents a share last year. Shares rose more than 5 percent to $35.06.
Compiled from staff and wire reports.


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pdbliz

People of America.........I now believe,,,,there is no difference in Democrates or Republicans..............BOTH PARTIES ARE NOT IN THE AMERICAN PEOPLE INTEREST.!!!!!.....................America has came to a road,,,we have never been before,,,,,,and,,,IT DOES NOT LOOK GOOD,,,,,,,,,,YOUNG PEOPLE WILL NOT HAVE ANYTHING IN LIFE ......But,,,it is somewhat there on fault.....
DEMOCRATE PARTY IS A PARTY OF SLAVERY,,,,,,,MODERN DAY SLAVES,,BOTH BLACK AND WHITE.... ALL ABOUT VOTES FOR WELFARE.!!!!

June 28 2013 at 8:26 AM Report abuse +1 rate up rate down Reply
pdbliz

SAYS,,,WHO.!!!!!!!!! Stock Market Booming.!!!!!!!1 Bull Crap..............FAKE MONEY,,,,,USELESS PAPER BEING PRINTED,,,,,,,,,I got a idea,,,let us prints some money,,,,It is same as the government money,,,,,,FAKE,!!!!!

And,,,where is my interest earnings now,,,,sine the market is booming.?????
4% in 2005,,,,,,1/2 % now,,,,,,,,,YOU CALL THAT A BOOM,???????

June 28 2013 at 8:22 AM Report abuse +2 rate up rate down Reply
pdbliz

To all you STUPID YOUTH.....I have never seen a poor person ,,,give anyone a job,,,,be Republican or Democrate....... In life,,,we have all classes of people,,,,,rich,,,poor,,,middle.........There has to be this in order to make life work....
Same as jobs,,,,,,We have to have lower wage jobs,,for people who do not go to college,,,,,,,middle same,,,and,,for those who get off there butts and work hard,,,,,,we have RICH PEOPLE.....
When,,now,,,we have more people on WELFARE than ever in history.....
When you run the rich off,,,,,who pays the welfare.????? YOU STUPID YOUTH DO NOT UNDERSTAND....
YOU ARE BEING CON BY YOUR OWN GOVERMENT.!!!!!!!!

June 28 2013 at 8:19 AM Report abuse +2 rate up rate down Reply
Master Sixkiller

The books were cooked again, and Wall Street got their sugar fix all is right as rain.
Closing Bell: Stocks Make Gains for 3rd Straight Day on Upbeat Economic Data.
Sounds like droppings on the barn floor to me. Mean while everyone just go back to work we have to pay for the Africa trip for fearless leader.

June 28 2013 at 7:41 AM Report abuse +2 rate up rate down Reply
thefacts22

All the Feds are doing,is BOND buying of DEBT.....private and Government....and they said will not stop until the economy improves.....The cheap money is used to inflate the Market,is not real,and it will never be...higher..interest rates are a reflexion of real investors lack of confidence....in the long run it will not work like austerity,,as it wil not ever generate enough revenews to off set debt...it is all smoke and mirrors,...that tactic was used by every former Socialist Nation,it back fired and failed.

June 28 2013 at 5:40 AM Report abuse +2 rate up rate down Reply
setanta54s_back

paddy_whacko sez

rich_paddlyrich

Tell me.....why the republican party has well earned the title:.......The Party Of No?

___________________________________________________
no what ?
no diMprogressive stupidity ?
etc

June 28 2013 at 1:23 AM Report abuse -1 rate up rate down Reply
1 reply to setanta54s_back's comment
thefacts22

Do you have any conception of how economy works?

June 28 2013 at 5:42 AM Report abuse rate up rate down Reply
wla2000

Remember, the republicans want to "Turn this country around!" If they are allowed to, we will be moving BACKWARDS!!!!

June 27 2013 at 10:13 PM Report abuse +2 rate up rate down Reply
3 replies to wla2000's comment
John Perry

1.2% GDP sure is something to feel good about.
I guess it's better than .02%.

Apparently Obama has agreed to take care of his wealthy friends and donors by laundering 85 BILLION DOLLARS a month of funny money through Wall Street awhile longer

June 27 2013 at 10:06 PM Report abuse -3 rate up rate down Reply
h.hughjardon

What a crock...the markets are up because our ecenomy/gdp/job market sucks. The big players only care about uncle ben's continued bond purchases first and then world markets.

June 27 2013 at 9:39 PM Report abuse +4 rate up rate down Reply
1 reply to h.hughjardon's comment
rich_paddlyrich

Sales of existing homes jumped nearly 7 percent in May as homebuyers moved to lock in low mortgage rates. The National Association of Realtors said the number of signed contracts jumped last month to its highest level since December 2006.

June 28 2013 at 12:54 AM Report abuse +1 rate up rate down Reply
1 reply to rich_paddlyrich's comment
thefacts22

There has not been "new" homes or apts built in the last 5 years......there are hundred of thousands of houses in limbo...waiting empty for foreclosure

June 28 2013 at 5:50 AM Report abuse +2 rate up rate down
paddleman1928

lucky for the market most people have the attention span of a goldfish

June 27 2013 at 9:27 PM Report abuse +2 rate up rate down Reply