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US stocks edge higher; Pharmacyclics jumps on AbbVie $21 billion bid


NEW YORK — U.S. stocks edged higher Thursday, led by gains for utilities and financial companies.

Pharmacyclics, a pharmaceutical company that makes cancer drug Imbruvica, surged after AbbVie said it would acquire the company for $21 billion. Kroger jumped on a strong earnings report.

KEEPING SCORE: The Standard & Poor's 500 index was little changed at 2,099 as of 1:48 p.m. Eastern time. The Dow Jones industrial average climbed 16 points, or 0.1 percent, to 18,112. The Nasdaq composite gained six points, or 0.1 percent, to 4,972.

DRUG BOOST: Pharmacyclics rose $24.37, or 10.6 percent, to $254.76 after AbbVie said it would acquire the company for about $21 billion. It's AbbVie's first attempt at a major deal since walking away from a $55 billion takeover of Shire last fall. AbbVie's stock fell $3.07, or 5.1 percent, to $57.18.

NO JOY: The shares of Joy Global, a manufacturer of mining equipment, fell the most in the S&P 500. The stock slumped $2.43, or 5.8 percent, to $39.72 after the company said that the worldwide slump in commodity prices continues to hurt its business.

BETTER EARNINGS: Retailer Kroger was biggest gainer in the S&P 500 after the company reported earnings that were better than Wall Street analysts had expected. The company benefited from better fuel margins and a lower inventory charge. The stock climbed $4.20, or 6.1 percent, to $73.91.

BRIGHTER EUROPE: European stock markets rose after the European Central Bank upgraded its growth forecast for the eurozone this year to 1.5 percent from 1 percent. ECB President Mario Draghi said that the bank's planned 1 trillion euro ($1.1 trillion) stimulus program will start on March 9. The stimulus is designed to keep long-term interest rates low to spur growth and get inflation back toward the ECB's target.

PHOTO: Chinese Premier Li Keqiang delivers the work report during the opening session of the National People's Congress at the Great Hall of the People in Beijing, Thursday, March 5, 2015. (AP Photo/Ng Han Guan)
Chinese Premier Li Keqiang delivers the work report during the opening session of the National People's Congress at the Great Hall of the People in Beijing, Thursday, March 5, 2015. (AP Photo/Ng Han Guan)

EUROPE'S DAY: In Europe, France's CAC-40 rose 0.9 percent while Germany's DAX climbed 1 percent. Britain's FTSE 100 rose 0.6 percent.

HIRING SITUATION: The number of people seeking U.S. unemployment benefits rose last week to the highest level since May, though the pace of applications remains at a level consistent with steady hiring. Weekly applications rose 7,000 to a seasonally adjusted 320,000, the Labor Department said Thursday. The four-week average, a less volatile measure, increased 10,250 to 304,750, a six-week high.

On Friday, investors will watch for the release of February's U.S. nonfarm payrolls figures. Economists surveyed forecast the U.S. added 250,000 jobs last month, according to FactSet.

THE QUOTE: U.S. stocks are close to record levels and have more than tripled since bottoming out in March, 2009 in the wake of the financial crisis and the deep recession that followed it. The tepid global growth picture, means that any further gains from here are likely to be limited, says Tony Roth, Chief Investment Officer at Wilmington Trust.

"Most of the big gains in equities are behind us now," says Roth. "It would seem very unlikely that we could string together multiple years where we could achieve anything better than high single digit returns."

CHINA TARGET: Earlier in Asia, Chinese markets fell after the communist leaders in China, the world's second-biggest economy, lowered their growth forecast to about 7 percent, down from 7.5 percent last year. The new official benchmark comes after China's economy expanded 7.4 percent in 2014, its slowest pace in nearly a quarter century.

ENERGY: Benchmark U.S. crude fell 81 cents to $50.74 a barrel on the New York Mercantile Exchange. Brent crude, the international benchmark, rose 12 cents to $60.66 a barrel in London.

BONDS AND CURRENCIES: U.S. government bond prices didn't move much. The yield on the 10-year Treasury note held steady at 2.12 percent. The euro fell to $1.1018. The dollar rose to 120.22 Japanese yen.

METALS: Precious and industrial metals futures ended mostly lower. Gold fell $4.70 to $1,196.20 an ounce, silver was unchanged at $16.16 an ounce and copper edged down less than a penny to $2.65 a pound.

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Photo Gallery:
PHOTO: Trader Mark Muller, left, and specialist Jay Woods work on the floor of the New York Stock Exchange, Thursday, March 5, 2015. U.S. stocks opened higher on Thursday, led by gains for utilities and health care companies.  (AP Photo/Richard Drew)
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