Wall St. >>> Stellar Sales Sparks Mini Rebound; Investors Cool On Greek Financial Woes

Stocks Rebound From Negative Start; Numbers Beat The Dumpers
US stock prices reversed a negative start on Thursday to end the session higher as investors took comfort in strong March retail sales but worries about Greece’s fiscal problems and poor US jobless claims data damped the rally.

Overcoming continued worries about Greece and ugly jobs data, Wall Street managed to secure a mini rally on Thursday as the bulls cheered the best retail sales growth on record.


Thanks to a mixed bag of news, the major market indexes spent time on both sides of breakeven today. A surprise increase in initial jobless claims contributed to early weakness, with the Labor Department reporting that first-time filings for unemployment benefits unexpectedly jumped by 18,000 last week. However, a well-received round of same-store sales from the retail sector helped offset the day's downbeat jobs data. Total sales for March surged by a record-setting 9.1%, with the vast majority of retail issues surpassing analysts' expectations. Meanwhile, speculation about a possible merger between United Airlines and US Airways drummed up some excitement for the airline sector, and helped to fuel the bullish case. After starting the day with a dip into the red, the equities market battled back to end the session on a positive note.

The Dow Jones Industrial Average (DJIA – 10,927.07) added 29.6 points, or 0.3%, as 20 of its 30 components closed higher. American Express set the pace for the advancing blue chips, while 3M Company led the 10 decliners lower.


The Dow rebounded neatly off its 10-day moving average today, but its upward momentum was halted by the 10,950 neighborhood.

In the same vein, the S&P 500 Index (SPX – 1,186.44) settled on a gain of 4 points, or 0.3%, to extend its lengthy streak above its own 10-day trendline. Finally, the Nasdaq Composite (COMP – 2,436.81) rounded out the winners' circle, tacking on 5.7 points, or 0.2%. However, the COMP continues to be stymied by the 2,440 level, which has capped its progress since Tuesday.

While stocks certainly benefited from robust retail sales data, crude futures failed to benefit from evidence of healthy consumer spending habits.

Instead, commodity traders continued to express their dismay with Wednesday's bearish inventory report, which revealed unexpectedly large weekly builds in crude and distillate supplies. The day's lackluster jobs data also pressured crude futures, and strength in the U.S. dollar served as the final nail in the coffin for black gold. By the close, crude oil for May delivery gave up 49 cents, or 0.6%, to settle at $85.39 per barrel.