US stocks mixed on Greek fears, positive data

NEW YORK: US stocks were a mixed bag on Thursday, as worries about a Greek debt crisis were offset by a pair of positive economic reports from the United States.

The Dow Jones Industrial Average closed up 64.25 points (0.54 percent) to stand at 11,961.52.

The broader S&P 500 index edged upwards 2.22 points (0.18 percent) to reach 1,267.64, while the tech-heavy Nasdaq Composite fell 7.76 points (0.29 percent) to 2,623.70.

"We had some good economic news today," said Peter Cardillo of Avalon Partners. "Of course the Greek situation is still in the spotlight."

Earlier, European stocks tumbled amid fears of a destabilizing default by Greece while the fiscally troubled Mediterranean country was shaken by political uncertainty and street protests.

In the United States, the Labor Department said new jobless claims fell to 414,000 in the week ending June 11, marking a decline of four percent from the previous week.

Meanwhile another report showed that US housing starts grew more than expected in May, rebounding 3.5 percent from April.

The stock of US natural gas pipeline operator Energy Transfer Equity gained 8.2 percent after it announced it was buying another major gas firm, Southern Union Company, in a deal valued at $7.9 billion.

Shares of Southern Union surged 17.5 percent on news of the deal.

In a warning sign for up-and-coming tech companies, Pandora shares plunged 23.9 percent to settle at $13.26, below the company's IPO price of $16, just one day after the Internet radio company went public.

Bond prices rose. The yield on the 10-year US Treasury note fell to 2.91 percent from 2.97 percent on Wednesday, while that on the 30-year bond dropped to 4.16 percent from 4.20 percent.

Bond prices and yields move in opposite directions.

Copyright AFP (Agence France-Presse), 2011