Voice Of Post

Federal spending cuts, U.S. stocks fluctuated between gains and losses after government data showed gross domestic product grew less than forecast at the end of 2012 while jobless claims fell more than estimated last week.
Limited Brands Inc., the owner of Victoria’s Secret chain, rose 3% after profit jumped. J.C. Penney Co. tumbled 21% after saying its net loss widened to $552 million......business.financialpost.

The Standard & Poor’s 500 Index rose 0.2% to 1,518.61 at 11:21 a.m. in New York. The Dow Jones Industrial Average was up 9.03 points to 14,074.14. The measure is less than 1% away from its October 2007 record.

“There were no real surprises here,” E. William Stone, chief investment strategist at PNC Wealth Management in Philadelphia, said in a telephone interview. His firm manages about US$115-billion. “The economic numbers tell you that the pace of recovery is still sluggish. But they also give you signs that the recovery may be more durable.”
Gross domestic product grew at a 0.1% annual rate, up from a previously estimated 0.1% drop, revised figures from the Commerce Department showed today. The median forecast of 83 economists surveyed by Bloomberg called for a 0.5% gain. Federal military outlays declined at a 22% annual pace, the biggest decrease since 1972.

Jobless Claims

Jobless claims declined by 22,000 to 344,000 in the week ended Feb. 23, the Labor Department reported today in Washington. The median forecast of 44 economists surveyed by Bloomberg called for 360,000 applications. The number of people collecting unemployment insurance dropped to the lowest level since June 2008.

The S&P 500, which is trading less than 3.5% from its record, has gained 6.5% this year as lawmakers agreed on a compromise on taxes and amid better-than-estimated earnings. About 74% of the S&P 500 companies that have released quarterly results beat profit estimates, according to data compiled by Bloomberg. The index trades at 15 times reported earnings, below the average since 1954 of 16.4.

J.C. Penney dropped 21% to $16.67. Chief Executive Officer Ron Johnson is facing mounting pressure after the first year of his turnaround plan resulted in the department-store company’s lowest annual sales in more than two decades.

Groupon Inc. slumped 22% to $4.65 after forecasting sales that missed analysts’ estimates, underscoring the challenge facing Andrew Mason, whose board has already considered replacing him as chief executive officer.

Cablevision Systems Corp. slipped 5.7% to $14.59. The fifth-largest U.S. cable provider by subscribers posted a fourth-quarter operating loss and missed revenue estimates after Superstorm Sandy devastated New York-area homes.

Limited Brands rose 3% to $45.82. The company yesterday reported fourth-quarter net income rose 14% as sales grew.