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Economic data on US, China boost stocks

By WTOP Staff

ALEX VEIGA
AP Business Writer

Stocks got off to a good start Thursday and held onto their gains, carving out a modest increase for the second day in a row.

During a relatively slow week, stock investors drew encouragement from some positive news on the economy and housing. Improving earnings from Dollar Tree, Best Buy and other retailers also helped the market.

Major U.S. indexes appeared headed for a slight rise even before trading began. A survey from HSBC suggested a slowdown in China’s economy was flattening, and May’s reading on China’s manufacturing sector was the best in five months.

“A revival in China is good for emerging markets, good for global growth and therefore good for stocks, and not so hot for bonds,” said Krishna Memani, chief investment officer at Oppenheimer Funds.

Investors received more good news after the U.S. market opened. The Conference Board said its index of leading economic indicators posted a solid gain in April. The gauge, designed to predict the economy’s future health, provided more evidence that growth strengthened after a severe winter slowed business.

A U.S. government report showing a rise in the number of people seeking unemployment benefits last week didn’t dampen the market’s rise. Nor did the latest sales data for previously occupied U.S. homes, which rose modestly on a monthly basis in April, but was down from a year earlier, according to the National Association of Realtors.

The Standard & Poor’s 500 index rose 4.46 points, or 0.2 percent, to close at 1,892.49. The index is up 2.4 percent for the year.

The Dow Jones industrial average rose 10.02 points, or 0.1 percent, to end at 16,543.08. The Nasdaq composite index added 22.80 points, or 0.6 percent, to finish at 4,154.34.

The Dow and Nasdaq remain down slightly for 2014.

Small-company stocks also extended their prior-day rally, pushing the Russell 2000 index up 10.24 points, or 0.9 percent, to 1,113.87.

Major indexes have finished slightly higher in four of the last five trading days. The gains have nudged the S&P 500 index, which hit a high early last week, up 0.8 percent for this week.

Bond prices fell slightly Thursday. The yield on the 10-year Treasury note edged up to 2.55 percent from 2.54 percent late Wednesday.

Among the biggest variables influencing the markets this year have been uncertainty over when U.S. growth will accelerate and concern that China’s growth is slowing.

The latest batch of economic and earnings data suggest the global economy is recovering, albeit slowly.

“I do expect us to see a continued recovery, but it’s not going to be dramatic and therefore I don’t look for any big dramatic moves in the market either,” said Chris Gaffney, a senior market strategist at EverBank Wealth Management.

Several U.S. retailers had a good day.

Best Buy rose 87 cents, or 3.4 percent, to $26.22 after its earnings came in well ahead of what investors were looking for, while L Brands, which owns store brands such as Bath and Body Works and Victoria’s Secret, rose 83 cents, or 1.5 percent, to $56.69.

A pickup in spending by shoppers at Dollar Tree helped boost the discount store operator’s income in its latest quarter. Its stock gained $3.31, or 6.6 percent, to $53.31, the biggest gain in the S&P 500 index.

Sears Holdings reported a wider quarterly loss as sales slumped. Its shares were down for much of the day, but recovered by late afternoon. Sears rose $1.54, or 4.2 percent, to $38.10.

The latest home sales figures helped lift most of the major U.S. homebuilders. Beazer Homes USA led the pack, rising 90 cents, or nearly 5 percent, to $19.08. The government reports how new U.S. home sales fared in April on Friday.

Among other stocks in the news:

— China’s No. 2 online retailer, JD.com, made its debut on the Nasdaq, beating Chinese rival Alibaba to American stock market. Its stock jumped $1.90, or 10 percent, to $20.90. The two other Chinese Internet firms didn’t do as well. Online marketplace 58.com fell $3.44, or 8.2 percent, to $38.29, while Weibo sank $2.20, or 10.9 percent, to $18.05.

— Lorillard fell the most in the S&P 500 index following reports that the tobacco seller could tie up with Reynolds American, creating the country’s second-largest producer. The stock sank $3.12, or 5 percent, to $59.51.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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