Market Update

What is RSS? |

For the latest news and analysis you can now follow Anthony on Twitter at @AnthonyGrech_IG.

The Dow Jones Industrial Average opened 34.14 points up at 12,666.14 and the S&P 500 climbed 5.42 points to 1336.08 following better-than-expected housing starts and industrial production data.

US housing starts rose 2.6% to a 717,000 annual rate, up from March's revised 699,000 and ahead of expectations for a drop to 685,000. Building permits, an indicator of future construction, fell 7% to a 715,000 annual pace last month from 769,000 in March, which was the fastest since September 2009. March's figure was revised from a 764,000 pace.

Industrial production surged 1.1% in April, the biggest gain since December 2010 and above expectations for a 0.6% gain. Production was boosted by mining, auto production and higher utility output. Looking back, March production was revised up to a 0.4% gain from a flat reading.

US retail shares suffer

In corporate news, JC Penney's share price plunged 15% to $28.35 on the open, after unveiling a first quarter loss on the back of restructuring expenses and other charges. Total sales slumped 20.1% to $3.15 billion, below the $3.41 billion expected, while like-for-like sales also came in worse than predicted with an 18.9% drop.

The latest developments raise questions over the leadership of CEO Ron Johnson, who is trying to remake JC Penney as a fashion-oriented chain.

To see what the Insight platform can offer you, visit our Insight page.

IG Index provides an execution-only service. The material above does not contain (and should not be construed as containing) investment advice or an investment recommendation, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Index accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of the above information. Consequently any person acting on it does so entirely at his or her own risk. The research does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. This communication must not be reproduced or further distributed.