Wall Street gains as investors welcome an improved
GDP reading, a stronger dollar and weaker crude prices.
Gas hits 22nd record high: The national average price for a gallon of regular unleaded gas rose to a record $3.952 from the previous day's record of $3.944, AAA reported.
GDP revised higher: Economic growth in the first quarter grew at a faster paced than initially thought, the government reported. U.S. gross domestic product rose at an annual rate of 0.9%, as expected, versus the initial reading of 0.6%. The Core PCE deflator, the report's closely-watched inflation component, was 2.2%.
Retail earnings: Sears Holdings reported a quarterly loss versus a profit a year earlier on weaker revenue, missing analysts' estimates. Shares fell 3.6%. Costco reported higher earnings that topped analysts' estimates on higher revenue that missed expectations. Shares were barely changed.
Like Costco, Big Lots benefited from struggling consumers seeking bargains, posting higher quarterly sales and earnings that topped expectations. Shares gained 7.5%.
JPMorgan-Bear Stearns deal closes: As expected, the majority of Bear Stearns shareholders endorsed JPMorgan Chase's proposed takeover of the brokerage, which nearly collapsed amid the subprime mortgage market meltdown. Both stocks gained.
Jobless claims rise: The number of Americans filing new claims for unemployment rose 4,000 to 372,000 last week, topping expectations.
Other markets: The dollar gained versus the euro and yen. Treasury prices tumbled, raising the yield on the 10-year note to 4.08% from 4% late Monday. Bond prices and yields move in opposite directions.
Market breadth was positive. On the New York Stock Exchange, winners beat losers 3 to 2 on volume of 1.23 billion shares. On the Nasdaq, advancers topped decliners by a similar margin on volume of 1.93 billion shares.