Stocks little changed after record levels of Tuesday; more workers added - The Buffalo News
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Stocks little changed after record levels of Tuesday; more workers added

U.S. stocks were little changed, after benchmark gauges closed at record levels Tuesday, as private data showed companies added more workers than estimated in June before the government’s jobs report today.

Constellation Brands Inc. rallied 2.3 percent after boosting its earnings forecast. Rackspace Hosting Inc. jumped 6.3 percent after TechCrunch reported the company may go private. Bank of America Corp. advanced 1.6 percent as Deutsche Bank AG advised investors to buy the stock. Airlines posted the biggest loss among S&P 500 industries after Delta Air Lines Inc. said excess capacity in some international markets forced fares down more than expected.

The Standard & Poor’s 500 Index rose less than 0.1 percent to 1,974.62. The Dow Jones industrial average added 20.17 points, or 0.1 percent, to 16,976.24. Both gauges extended closing records. The Russell 2000 Index of smaller companies lost 0.5 percent today after rallying 0.8 percent yesterday. U.S. equity markets close at 1 p.m. tomorrow ahead of the Independence Day holiday.

“The ADP data is very strong,” Jim McDonald, chief investment strategist at Chicago-based Northern Trust Corp., said by phone. His firm manages about $915 billion of assets. “It’s another sign that we’re regaining some momentum in the latter part of the year. People are probably not going to want to have big bets on ahead of the payroll number.”

The S&P 500 moved in a range of 0.21 percentage point today from its highest and lowest points, the second-smallest fluctuation since 1993 after a 0.20 point reading in December, data compiled by Bloomberg show. About 5.2 billion shares changed hands on U.S. exchanges, 13 percent below the three- month average.

Benchmark indexes reached records Tuesday, with the 30-member Dow rising within two points of 17,000. The Dow Jones Transportation Average also jumped to an all-time high, while the Russell 2000 briefly touched a record. Simultaneous gains in different industries are sometimes cited by chart analysts as evidence economic growth is pervasive enough to fuel additional gains.

Stocks are extending a rebound from the selloff earlier this year that started with biotechnology and small-cap stocks. Equities have rallied since the S&P 500 reached a two-month low in April as central bank stimulus spread from Europe to Japan and the U.S.

“Everything that we’re seeing in the second quarter has generally been improving and in most cases accelerated improvement,” Chris Bouffard, chief investment officer at the Mutual Fund Store in Overland Park, Kan., said by phone. His firm oversees $9 billion. “The market’s looking to say the outlook for the next few quarters is more positive than we saw certainly in the first quarter.”

Rackspace rallied 6.3 percent to $35.88. The provider of cloud-computing services has been negotiating with a private-equity firm to borrow capital for a deal to go private, TechCrunch reported, citing an unidentified source.

GoPro Inc. lost 14 percent to $42.04, the first drop since its initial public offering last week. The maker of wearable cameras surged 20 percent to $48.80 yesterday, doubling its IPO price in a week. The company’s market value climbed to $6 billion, compared with $2.96 billion in its IPO.

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