Share “S&P 500 surges on housing starts, jobless...”

S&P 500 surges on housing starts, jobless claims

Published on NewsOK Modified: January 17, 2013 at 3:45 pm •  Published: January 17, 2013

"This rally is probably a little bit too optimistic for the information that we got," Caughey Forrest said. "There's some conflicting information here and the market has just decided to overlook the negative thing."

The indexes powered higher even as more discouraging news about manufacturing came out. The Philadelphia branch of the Federal Reserve reported that manufacturing contracted this month in the mid-Atlantic region. On Tuesday, the Fed's New York branch reported that manufacturing in its own district was worsening.

Stocks started 2013 with a rally after lawmakers came up with a last-minute plan to stop the U.S. going over the "fiscal cliff," a series of tax hikes and spending cuts that economists say would probably have pushed the U.S. into recession.

The Dow and the S&P 500 are both up 3.8 percent since the start of January.

The yield on the 10-year Treasury note, which moves inversely to its price, rose four basis points to 1.88 percent.

Other stocks making big moves:

— EBay rose $1.27, or 2.4 percent, to $54.17 after reporting fourth-quarter earnings that exceeded analysts' expectations. Bargain-hunting holiday shoppers flocked to eBay's online shopping mall and digital payment service, PayPal.

— CBS surged $3.01, or 7.9 percent, to $40.95 after the media company said late Wednesday that it was converting its U.S. outdoor advertising business to a real estate investment trust and selling the international portion of the business. Deutsche Bank analysts lifted their target price on the stock to $47 from $40, saying the conversion to a REIT "meaningfully enhances value."

— BlackRock gained $9.76, or 4.4 percent, to $232 after the investment manager said its fourth-quarter net income surged, beating analysts' forecasts. The company also increased its dividend and said it may buy back more stock.