The Dow Jones Industrial Average is up slightly following some positive economic reports. As of 1:20 p.m. EST, the Dow is up 0.27% to 14,114, while the S&P 500 is up 0.44% to 1,523.
There were two U.S. economic releases today.
Weekly jobless claims
Feb. 16 to Feb. 23
Source: MarketWatch U.S. Economic Calendar.
First up, the Department of Labor reported that weekly new unemployment claims fell by 22,000 to 344,000. That's far better than analyst expectations of 362,000. The less volatile four-week moving average fell 6,750 to 355,000. New unemployment claims can be affected by numerous factors, so economists generally follow the four-week moving average.
Next, the Department of Commerce came out with its revised fourth-quarter GDP numbers. GDP growth was revised to 0.1% growth, while the initial report showed a 0.1% decline. That's still below analyst expectations of 0.5% growth and is the lowest growth in nearly four years. Q4 GDP was supported by consumers who increased their spending by 2% in the fourth quarter, but big drops in defense spending and inventory spending slowed the economy.
Going forward, GDP growth is expected to be slow as consumers deal with higher taxes on income and payrolls. Gasoline prices are also at a high level for this time of year, further weighing on consumers. Of course, the economy will also have to deal with slightly decreased government spending if Congress does nothing about the sequester.
Today's Dow leader
Today's Dow leader is Hewlett-Packard , up 2% to $20.17. Hewlett-Packard has been on a tear for the past week, rising a little more than 17% since last Thursday. The company reported earnings last Thursday that, while down, were better than expected, pushing the company's shares up. This week the good news continued, with HP announcing it had sold its webOS operating system to LG Electronics, which the company acquired when it bought Palm in 2010. Yesterday the company jumped 4% after announcing it would develop tablets using Google's Android operating system.
These are just a few of the many steps Meg Whitman is taking to turn around the struggling PC manufacturer. The question is: Does this make HP one of the least-appreciated turnaround stories on the market, or is this a minor detour on its road to irrelevance? The Motley Fool's technology analyst details exactly what investors need to know about HP in our new premium research report. Just click here now to get your copy today.
The article Why Hewlett-Packard Is Leading the Dow Higher originally appeared on Fool.com.
Dan Dzombak can be found on Twitter @DanDzombak or on his Facebook page, DanDzombak. He has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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