U.S. stocks tracked the gains in Europe and Asia after China reaffirmed its investment commitments to the euro-zone debt. Weekly jobless claims decrease 14,000 in the last week and first quarter GDP growth was revised lower to 3%. Tiffany & Company said profit more than quadrupled and quarterly net at Costco and Jo-Ann Stores increased.
The Commerce Department said that GDP increased at an annual rate of 3% in the first quarter, a downward revision from the advance estimate of 3.2% growth.
U.S. economy expanded at 3.0% in the first quarter after surging at 5.6% in the fourth. The price index of gross domestic purchases increased 1.4% in the quarter compared to 1.7% in the fourth. Change in private inventories added 1.65% compared to 3.79% in the fourth.
Initial claims for unemployment benefits saw a modest decrease in the week ended May 22nd, according to a report released by the Labor Department today. The report showed that initial jobless claims fell to 460,000 from the previous week''s revised figure of 474,000.
China denied reports that it would reconsider its euro holdings and reiterated that it remains a long-term investor in Europe. The Chinese central bank says Europe remains a key market for investing the nation''s exchange reserves.
The euro-zone debt crisis will not seriously affect China''s overseas investment, the general manager of China Investment Corporation (CIC) said yesterday.
""The CIC will keep its investment level in Europe, no more, no less,"" Gao Xiqing said at the 2010 Organization for Economic Cooperation and Development (OECD) Forum in Paris.
The CIC is very concerned about the short-term market fluctuations amid a threatened euro-zone stability, he said. Gao added that, in the long run, the CIC will keep a close eye on the EU policies, currency reforms and issues of financial regulation.
Tiffany & Co., the jewelry retailer posted a surge in its fourth-quarter profit, boosted by broad-based growth in the Americas, Asia-Pacific and European regions, besides the absence of the year-ago restructuring charges.
Costco Wholesale Corp., membership warehouse club operator reported an increase in third quarter profit, helped primarily by a 12% growth in quarterly net sales. Comparable sales for the period improved 10%, reflecting the positive impact from gasoline inflation and strengthening of foreign currencies.
Jo-Ann Stores Inc., fabric and crafts retailer said that its first-quarter profit more than doubled from last year, driven by higher same-store sales and improved margins.
Commodities, Currencies and Yields
Dollar edged lower against euro to $1.2268 and increased against the Japanese yen to 90.46.
Crude oil increased $1.75 to $73.26 a barrel for a front month contract, natural gas edged higher $0.03 cent to $4.21 per mBtu and gasoline increased 2.460 cents to 199.50 cents.
Gold increased $0.70 in New York trading to close at $1,216.00 per ounce, silver closed higher $0.039 to $18.34 per ounce and copper for the front month delivery increased 5.050 cents to $3.13 per pound.
Yields on 10-year U.S. bonds increased to 3.27% and on 30-year U.S. bonds traded at 4.17%.
Stock Movers
Central European Media Enterprises Ltd added 6.9% after the Czech television broadcaster said CME will be included in the MSCI Czech Index starting tomorrow, MSCI Inc.
Citigroup Inc. rose 2.5% after the bank was upgraded to “outperform” from “perform” at Oppenheimer & Co.
