This Stock Is Leading the Dow Higher Today

The Dow is up for the second day in a row on some slightly positive economic reports. As of 1:15 p.m. EST, the Dow Jones Industrial Average (DJINDICES: ^DJI  ) is up 36 points, or 0.27%, to 13,426. The S&P 500 (SNPINDEX: ^GSPC  ) is up 0.36% to 1,466.

There were three economic reports this morning.

Report

Period

Result

Previous

New unemployment claims

Dec. 30 to Jan. 5

371,000

367,000

Job openings

November

3.68 million

3.67 million

Wholesale inventories

November

0.6%

0.3%

Source: MarketWatch U.S. Economic Calendar.

This morning the Department of Labor announced that initial jobless claims rose to a seasonally adjusted 371,000. That's 4,000 above last week and higher than analyst expectations of 365,000. The rise brings the four-week moving average -- a more stable measure of the jobless trend -- to 365,750.

US Initial Claims for Unemployment Insurance Chart

US Initial Claims for Unemployment Insurance data by YCharts.

The second economic release was also from the Department of Labor, which reported that job openings rose slightly to 3.68 million in November, up 10,000 from October. Year over year, job openings are up 12%. The third and final release of the day was from the Department of Commerce, which reported that inventories rose 0.6% in November, accelerating from October's 0.3% growth. Inventories have risen 7% in the past year as the economy has strengthened.

After an upbeat report from Alcoa, things are looking up for earnings season, so it's no surprise that the market is up.

Today's Dow leader
Today's Dow leader is Bank of America (NYSE: BAC  ) , up 2.8%. Banks' financial results are highly dependent on the health of the economy, so financial stocks are up on the relatively positive economic releases today.

Bank of America had a huge year in 2012. The bank's stock soared 107.3% in 2012 as the bank settled with 49 states over the robo-signing fiasco, estimated its future liabilities to Fannie Mae and Freddie Mac, divested noncore operations, and significantly improved its financial situation. More recently, the stock has been rising as the U.S. housing market continues to improve. The strengthening economy, among other factors, is why Fool analyst Amanda Alix thinks Bank of America can hit $20 per share before the summer. Click here for her take.

Should you buy B of A?
To learn more about the most-talked-about bank out there, check out our 
in-depth company report on Bank of America. The report details Bank of America's prospects, including three reasons to buy and three reasons to sell. Just click here to get access.


Read/Post Comments (0) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2189658, ~/Articles/ArticleHandler.aspx, 11/25/2014 11:12:51 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement