Wall Street ended stronger thanks to encouraging economic data, including jobless claims that remain near 15-year lows. Bobbi Rebell reports.
CBS, the owner of the most-watched U.S. TV network, reported better-than expected profits after the closing bell, though revenue fell slightly. But graphic chip maker Nvidia warned of lower than expected revenue for the second quarter. Demand is being hurt by a fall in PC sales and a stronger dollar. Stocks rose on upbeat economic data as investors get set for the government's jobs report on Friday. Tech stocks led the rally. The number of Americans filing jobless claims rose just a tad last week, coming in much stronger-than expected. Among the S&P 500's winners: Yahoo. Its shares rallied on Alibaba's strong quarterly results. Yahoo plans to spinoff its stake in the Chinese e-commerce giant later this year. Alibaba's stock shot higher, but it's still not far from its post-IPO low. Staying on the China theme, retailer Lumber Liquidators said it's pulling Chinese-made laminate flooring from its stores. Shares rebounded on the news. But they've been halved since the CBS show, "60 Minutes," alleged that that flooring contained excessive levels of formaldehyde. On the downside, Whole Foods Market a biggest loser on the S&P and Nasdaq 100 . Many analysts slashed their price targets one day after the upscale grocery chain said comparable sales growth had cooled. Also among the worst performing Nasdaq stocks: Priceline. The online travel services company sees the strong dollar slowing its growth in the current quarter. Tesla shares fell one day after reporting that its quarterly loss had widened and cash reserves had shrunk Jefferies analyst Dan Dolev: SOUNDBITE: DAN DOLEV, AUTOMOTIVE ANALYST, JEFFERIES (ENGLISH) SAYING: "The biggest push back we were getting this morning from investors is the cash burn. The reason they're burning so much cash is because they're expanding capacity to produce more cars because there is so much pent-up demand. So, the cash burn is a good thing." Reuters has learned that private equity firm Golden Gate Capital is in talks to buy Ann. A deal would value the parent of retailer Ann Taylor at roughly $2 billion. In Europe, the major indices closed mixed. Share recouped much of their earlier losses as the dollar rose against the euro.