The Dow Jones Industrial Average is up after for the 10th day in a row following multiple positive reports on the state of the economy. As of 1:15 p.m. EDT the Dow was up 59 points, or 0.41%, to 14,515. The S&P 500 was up 0.4% to 1,561.
There were three U.S. economic releases today.
| Report | Period | Result | Previous |
|---|---|---|---|
| Weekly new unemployment claims | March 2 to March 9 | 332,000 | 342,000 |
| Producer price index | February | 0.7% | 0.2% |
| Core PPI | February | 0.2% | 0.2% |
| Current account deficit | Q4 | ($110 billion) | ($112 billion) |
Source: MarketWatch U.S. Economic Calendar.
While the PPI was up 0.7%, which was expected as higher energy costs impacted producers. Absent energy costs, the PPI was just up 0.2%.
US Initial Claims for Unemployment Insurance data by YCharts.
New unemployment claims can be volatile, so it is generally better to watch the four-week moving average, which dropped by 2,750 to 346,750. That’s the lowest level since 2008.
While the jobs market is strengthening, the economy is still not adding jobs fast enough to significantly reduce the unemployment rate anytime soon. The Federal Reserve Open Market Committee has said it plans to continue QE3 until the unemployment rate hits 6.5% or inflation picks up. Until then, the Fed will continue buying up $85 billion worth of long-term assets every month to prop up the economy.
Today’s Dow leaders
Today’s Dow leader is Hewlett-Packard Company (NYSE:HPQ), up 1.8% to $21.71 on no real news. Earlier this week the British Serious Fraud Office opened an investigation into HP’s accusations of fraud against former executives of Autonomy. If you recall, HP acquired Autonomy for $10 billion in 2011, only to write the acquisition down for $8.8 billion last year. HP accused former executives — including Autonomy’s founder and former CEO, Mike Lynch — of fabricating sales to boost Autonomy’s financials. While American authorities commenced investigations soon after Hewlett-Packard Company (NYSE:HPQ)’s accusations, this is the first notice that British authorities are also investigating.
While the stock was hit hard last year, dropping 47% in 2012, there have been no repercussions for the board members who approved the deal. Institutional proxy advisor Institutional Shareholder Services is recommending that investors vote against Hewlett-Packard Company (NYSE:HPQ) hairman Ray Lane, audit committee head G. Kennedy Thompson, and finance and investments committee head John Hammergren.
HP is rapidly shifting its strategy under the new leadership of CEO Meg Whitman, and this shift should include new board management, as the current leadership has been a disaster for shareholders.
The article Hewlett-Packard Leads the Dow to New Highs originally appeared on Fool.com and is written by Dan Dzombak.
Dan Dzombak can be found on Twitter @DanDzombak or on his Facebook page, DanDzombak. He has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.
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