After seeing early weakness on the heels of the release of a disappointing batch of U.S. economic data, stocks moved mostly higher over the course of the trading day on Thursday, extending the upward trend seen in recent weeks.
The major averages all ended the day in positive territory after turning in a mixed performance in the previous session. The Dow edged up 21.57 points or 0.2 percent to 12,471.02, the Nasdaq rose 13.94 points or 0.5 percent to 2,724.70 and the S&P 500 inched up 3.02 points or 0.2 percent to 1,295.50.
With the gains, the Dow and the S&P reached new five-month closing highs, while the Nasdaq rose its best closing level in two months.
The modest weakness seen in early trading came on the heels of the release of a report from the Commerce Department showing weaker than expected U.S. retail sales growth in the month of December.
The report said retail sales edged up by just 0.1 percent in December following an upwardly revised 0.4 percent increase in November. Economists had been expecting sales to increase by about 0.4 percent.
Excluding a 1.5 percent increase in auto sales, retail sales actually fell by 0.2 percent in December compared to expectations for a 0.4 percent increase.
Separately, the Labor Department said that initial jobless claims rose to 399,000 in the week ended January 7th from the previous week's revised figure of 375,000. Economists had expected jobless claims to edge up to 375,000 from the 372,000 originally reported for the previous week.
The disappointing data overshadowed news of successful bond auctions in Spain and Italy, which helped to ease some of the recent concerns about the European debt crisis.
However, selling pressure waned over the course of the morning, as analysts pointed out that the recent trend for U.S. economic data remains positive.
Stocks subsequently recovered from the early weakness, although buying interest remained relatively subdued, limiting the upside for the markets.
Among individual stocks, Tractor Supply Co. (TSCO) showed a strong upward move on the day after the company reported stronger than expected fourth quarter revenues and raised its full year earnings guidance above analyst estimates.
Meanwhile, shares of Raymond James Financial (RJF) came under pressure after the company announced an agreement to acquire Regions Financial's (RF) Morgan Keegan unit for $930 million. Regions Financial also moved lower on the news.
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Thursday. Japan's Nikkei 225 Index fell by 0.7 percent, while Hong Kong's Hang Seng Index slipped by 0.3 percent.
Meanwhile, the major European markets turned mixed over the course of the trading day. While the German DAX Index rose by 0.4 percent, the U.K.'s FTSE 100 Index and the French CAC 40 Index both edged down by 0.2 percent.
In the bond market, treasuries moved to the downside on the day due in part to a disappointing thirty-year bond auction. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 2.9 basis points to 1.933 percent.
Electronic storage stocks showed a strong move to the upside over the course of the trading day, driving the NYSE Arca Disk Drive Index up by 1.8 percent. With the gain, the index ended the session at its best closing level in a month.
Quantum (QTM) helped to lead the storage sector higher, advancing by 6.6 percent, while Seagate Technology (STX) also posted a strong gain.
Significant strength also emerged among chemical stocks, as reflected by the 1.5 percent gain posted by the S&P Chemicals Index. Strong gains by Dow Chemical (DOW) and Eastman Chemical (EMN) helped to lift the index to a five-month closing high.
Networking, steel, and semiconductor stocks also saw considerable strength on the day, contributing to the turnaround by the broader markets.
Meanwhile, notable weakness remained visible in the healthcare provider sector, with the Morgan Stanley Healthcare Provider Index closing down by 2.1 percent.
Within the healthcare sector, PharMerica (PMC) and Omnicare (OCR) posted steep losses after the New York Post reported that regulators may block Omnicare's proposed acquisition of PharMerica.
Economic data may attract some attention on Friday, with the Commerce Department due to release its report on the U.S. trade deficit in the month of November. Traders may also keep an eye on reports on import and export prices and consumer sentiment.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.