Wall St end flat; Netflix, Esty and Virtu surge

The S&P 500 has been stuck in a range of 52 points since March 20 when it last neared its record, as weaker-than-forecast data from hiring to manufacturing elevated concern about earnings while at the same time bolstered the case for keeping interest rates lower for longer.

The benchmark has advanced 2.2 per cent this year, trailing benchmark gauges in all developed markets tracked by Bloomberg except Greece, with the Federal Reserve set to raise rates this year.

Investors are weighing economic reports for clues on the timing of the Fed's first rate increase since 2006. Fed chair Janet Yellen has said that while rates will probably rise this year, any decision depends on economic data. Housing starts rose less than forecast in March, while jobless claims increased in the latest week.

Fourteen companies reported quarterly results today. Analysts predict earnings for S&P 500 companies fell 5.6 per cent in the first quarter, cutting projections amid concern over a surging dollar and worse-than-forecast economic reports.

Seven of the S&P 500's 10 main groups fell Thursday, led by utilities, phone and raw-material companies. Consumer and financial companies rose, with Netflix's 18 per cent climb to a record leading the discretionary category.

The company said its video-streaming service topped 62 million subscribers worldwide. US subscribers jumped by 2.28 million in the first quarter, while international accounts rose 2.6 million, both beating the company's earlier forecast. Netflix has been one of the biggest contributors to the Nasdaq Composite's gains this year amid the stock's 65 per cent rally.

Semiconductors retreated as SanDisk fell 4.5 per cent. The company, which makes memory chips used in mobile devices such as Apple's iPhone, said sales will fall in 2015 as it loses customers, delays products and chip prices fall. Applied Materials lost 3 per cent and Broadcom slid 1.2 per cent.

Chipmakers were the best performers yesterday among 24 industries in the S&P 500 after Intel's earnings and outlook. The Philadelphia Stock Exchange Semiconductor Index Thursday declined 0.5 per

cent after rising 1.6 per cent Wednesday.

Steel companies Nucor and Allegheny Technologies fell more than 2.3 per cent to lead materials companies lower. Sherwin-Williams lost 1.7 per cent after the paint maker's first-quarter earnings missed analysts estimates.

UnitedHealth Group climbed 3.7 per cent to an all-time high. The largest US health insurer raised its 2015 forecast and posted first-quarter profit that topped analysts' estimates amid higher revenue from its Optum technology business. Peers Aetna, Anthem and Cigna all rebounded more than 1.9 per cent after each lost at least 1.6 per cent yesterday.

Philip Morris International jumped 8.7 per cent, the most in the more than six years, to lead consumer staples higher. The world's largest publicly traded tobacco company beat first-quarter profit estimates after sales volume was better than the company expected.

Citigroup's 1.5 per cent climb paced gains in financial companies as the group rose for a fourth day. Citi's earnings exceeded analysts' forecasts as a cost-cutting push helped the third-largest US bank weather a slump in trading. Bank of America advanced 1 per cent.

Three initial public offerings all jumped in their trading debuts, with artisan website Etsy posting the biggest gain, up 88 per cent. High-frequency trader Virtu Financial climbed 17 per cent, while party-supplies retailer Party City Holdco added 22 per cent.

The Chicago Board Options Exchange Volatility Index fell 1.9 per cent to 12.60. The gauge, known as the VIX, declined 14 per cent last week to its lowest level of 2015.

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Reuters