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U.S. stocks rally on news from across the pond

Thursday, June 05, 2014 - 02:19

June 5 - Stocks react to the European Central Bank cutting rates to new lows; GM reveals details in recall investigation; Sprint and T-Mobile to merge?; Amazon fuels smartphone speculation. Lily Jamali reports.

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The Dow and the S&P 500 finish at record highs. The S&P for the 8th time in the last 9 sessions. The Nasdaq also closing with gains Thursday. Though some investors are concerned that- at these lofty levels- a correction is overdue, Kate Warne, chief investment strategist at Edward Jones, says she's not worried. SOUNDBITE: KATE WARNE, CHIEF INVESTMENT STRATEGIST, EDWARD JONES (ENGLISH) SAYING: "We think earnings and the economy will move higher. That drags stocks higher. But in addition, we think sentiment is actually improving a little. The skepticism that everybody feels is actually positive because it means nobody's gotten to excited, too euphoric, at a time like this." U.S. markets getting a boost from across the pond, as the European Central Bank cut rates to record lows. ECB president Mario Draghi also saying there's a possibility of more monetary easing ahead. European markets ended the day mixed. Here at home, GM in the spotlight. CEO Mary Barra announcing 15 employees have been fired after an investigation into the ignition-switch defect linked to at least 13 deaths. More than half of the employees let go were in senior or executive roles. Barra said compensation for victims will be distributed soon and more recalls are likely. Shares of Sprint and T-Mobile both falling on reports that Sprint has agreed to pay $40 a share, a 17% premium, for its smaller wireless rival. But analysts say getting a deal approved by regulators poses a challenge. Amazon taking to YouTube to tease a new product coming out later this month. Speculation swirling that the new device is a long-awaited smartphone. Shares ended the day at their highest level since late April. In retail, sales at stores open for more than a year were up for a second month in row, in a sign consumers are more willing to spend. But drug store chain Rite-Aid cut its profit forecast for fiscal 2015, blaming rising drug costs and lower reimbursement rates. Shares down significantly for the day. The number of Americans filing new claims for unemployment rose last week. Still, there are signs of strength in the jobs market: New research from the Fed shows long-term unemployment falling to levels not seen since before the recession. Friday all eyes will be on last month's jobs report, which is expected to fall show job growth slowing, and unemployment on the rise.

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U.S. stocks rally on news from across the pond

Thursday, June 05, 2014 - 02:19