NEW
YORK (AP) — Stocks are slightly higher Wednesday after a survey showed
that hiring by private companies continued at a solid but unspectacular
clip in July. Banks are rising the most, while the biggest losses are
going to household goods makers, phone and utility companies, which are
typically considered safe investments.
KEEPING
SCORE: The Dow Jones industrial average added 29 points, or 0.2
percent, to 18,342 as of 11:25 a.m. Eastern time. The Standard &
Poor's 500 index picked up 2 points, or 0.1 percent, to 2,159. The
Nasdaq composite rose 6 points, or 0.1 percent, to 5,143. The Dow has
fallen for seven days in a row.
HIRING:
A survey by ADP said that private U.S. payrolls grew by 179,000 in July
as companies like retailers and shipping firms brought on more workers.
The total suggests employers continue to hire new workers and at a
faster pace than they were this spring, when hiring slowed sharply.
Still,
economic growth has been sluggish this year and signs indicate there
aren't many available workers to fill jobs. Economists forecast that the
government's jobs report to be released Friday, which includes hiring
by government as well as private companies, will show a gain of 175,000
jobs.
BANK
SHOT: Financial stocks are the biggest gainers Wednesday. Insurance
company AIG jumped $3.66, or 6.8 percent, to $57.80 following a strong
second-quarter report. Intercontinental Exchange, the owner of the New
York Stock Exchange and other stock markets, said it will split its
stock 5-for-1 and buy back $1 billion in shares. Its stock rose $16.55,
or 6.3 percent, to $280.48. Among other gainers, Bank of America added
29 cents, or 2.1 percent, to $14.42.
BAGGED:
Kate Spade skidded $4.07, or 20.2 percent, to $16.07 after the
clothing, handbag and accessories company disclosed weak results and
lowered its estimates for the year. The company said travelers aren't
spending as much money at stores that depend on shopping by tourists.
CROCS
ROCKED: Footwear maker Crocs plunged. It reported a
smaller-than-expected profit in the second quarter and its sales fell
$25 million short of estimates. It's projecting a bigger shortfall in
the current quarter, and Crocs said it expects overall revenue to shrink
this year. The stock gave up $2.45, or 21.3 percent, to $8.66.
HANES
DOWN: Underwear, t-shirt and sock maker Hanesbrands reported
disappointing results, and its shares lost 66 cents, or 2.6 percent, to
$24.99.
GOING
FOR A JOG: Fitness tracker maker Fitbit Inc. rebounded after its
quarterly results came in stronger than expected. The stock rose $1.37,
or 10.4 percent, to $14.53 in morning trading. It has lost more than
half its value this year. Fitbit went public in June 2015 with an IPO
that priced at $20 a share and was trading around $50 per share a year
ago.
ETSY
EARNINGS: Etsy climbed $1.70, or 13.4 percent, to $14.42. The online
crafts marketplace said sales were better than expected and raised its
sales and other projections for the year.
POKEMON
POWER: Zagg, a mobile device accessory company that bought smartphone
charger company Mophie earlier this year, reported an unexpected profit
and sales that were stronger than estimates. Among other factors, it
said the "Pokemon Go" craze boosted its sales as players needed to
recharge their phones more often. The stock rose 72 cents, or 11.3
percent, to $7.08.
ENERGY:
Benchmark U.S. crude added 80 cents, or 2 percent, to $40.30 a barrel
in New York. Brent crude, which is used to price international oils,
rose 89 cents, or 2.1 percent, to $42.67 a barrel in London.
OVERSEAS:
France's CAC 40 dipped 0.4 percent while Germany's DAX picked up 0.1
percent. Britain's FTSE 100 edged down 0.2 percent. Japan's benchmark
Nikkei 225 slipped 1.9 percent and South Korea's Kospi lost 1.2 percent.
Hong Kong's Hang Seng dipped 1.8 percent. Japanese stocks have been
slipping because the country's recently-announced stimulus package,
worth around $272 billion, fell short of expectations. Much of the money
is already in the pipeline. Meanwhile a strong yen is also deepening
pessimism over prospects for Japan's recovery.
BONDS,
CURRENCIES: Bond prices held steady and the yield on the 10-year
Treasury note remained at 1.56 percent. The dollar rose to 101.32 yen
from 100.88 yen. The euro fell to $1.1171 from $1.1227.
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