U.S. stocks swung between gains and declines as reports showed business activity expanded this month and gross domestic product topped estimates, while American International Group Inc. plunged on its quarterly loss and home sales missed projections.
The Standard & Poor’s 500 Index rose 0.1 percent to 1,103.51 at 10:23 a.m. in New York after retreating 0.5 percent earlier.
Business activity in the U.S. expanded in February, more than anticipated and at the fastest pace since 2005, a private report showed. The Institute for Supply Management-Chicago Inc. said that its business barometer climbed to 62.6, from 61.5 last month. Readings greater than 50 signal expansion.
The U.S. economy expanded at a 5.9 percent annual rate in the fourth quarter, more than the government reported last month, reflecting stronger business investment and a greater contribution from inventories, the Commerce Department said.
AIG, the insurer saved by the U.S. governemnt, posted a wider-than-expected loss of $8.87 billion after setting aside more reserves for claims and paying down bailout debts.
Sales of previously owned U.S. homes unexpectedly declined in January for a second month, signaling the government’s extension of a tax credit is being limited by a lack of job growth. Purchases fell 7.2 percent, the second-largest decline ever, to an annual pace of 5.05 million, the National Association of Realtors said today in Washington.
By Nick Baker – bloomberg.com
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