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Better news on wholesalers sends stocks higher

Better news on wholesalers sends stocks higher

The stock market recovered from an early slide Friday after the government reported that businesses are restocking their shelves at a faster pace than analysts had expected.
After declining almost 63 points in morning trading, the Dow Jones industrial average was up slightly at late morning, rising 15 points to 12,476.
U.S. wholesale stockpiles grew 0.6 percent in April. That's twice as fast as their March growth and a sign that businesses are ordering the goods that should lead to increased factory production and sales. Investors had been braced for more sluggish growth.
Wal-Mart Stores was the biggest gainer in the Dow, up $1.61, or 2.4 percent, at $67.48. Other companies that depend heavily on a strong economy grew too, including Intel Corp., up 35 cents, or 1.4 percent, at $26.29, and General Electric, up 19 cents, or 1 percent, to $19.19.
The Standard & Poor's 500 index rose one point to 1,316, and the Nasdaq composite rose 11 points to 2,842.
Energy prices fell, causing energy stocks to fall, too. They were down 1.3 percent as a group, the biggest decline among the S&P 500's 10 industry categories.
Markets also fell in Asia. Shanghai's stock index lost a half-percent, the fifth day of losses. Japan's Nikkei fell 2.1 percent.
Chinese leaders have been showing signs of urgency ahead of May trade and industrial data due out this weekend that might be even weaker than earlier pessimistic forecasts. The Chinese government cut interest rates for the first time in four years and has reduced gasoline and diesel prices for the second time in a month.
Over the long run, that will put more money in the pockets of Chinese consumers, but in the short run it's a sign that the government is worried about growth.
Major European markets fell. France's benchmark index lost 1.3 percent, Britain's dropped 0.8 percent and Germany's fell 0.9 percent.
Yields fell on U.S. Treasurys, a sign that investors want the relative safety of U.S. debt. The yield on the benchmark 10-year Treasury note fell to 1.59 percent from 1.64 percent late Thursday. The euro fell about a penny against the dollar to $1.25.
Facebook rose $1.02, or 4 percent, to $27.33 after announcing a new way for users to download applications, or apps, such as games like Zynga's "CityVille" and Electronic Arts' "The Sims." The stock is still far below its initial offering price of $38 when it went public three weeks ago.
Also on Friday, ahead of what may be a contentious shareholders meeting, Chesapeake Energy Corp. announced that it was selling pipeline assets in three separate deals for a total of more than $4 billion in cash. The stock rose a penny to $17.86.
McDonald's was the Dow's biggest decliner, down $1.38, or 1.6 percent, to $87 after reporting weakness in overseas sales and warning that economic volatility and rising expenses are pressuring results.


Updated : 2021-10-18 01:07 GMT+08:00