Stocks Advance and U.S. GDP is Revised Lower: Market Recap

U.S. stocks advanced on Thursday in the wake of a slightly underwhelming GDP report.

Austerity Bites: GDP Revised Lower: The United States economy has definitely begun to feel the effects of austerity. Cuts to government spending held back growth more than initially expected during the first quarter. Drawing on revised figures, the U.S. Department of Commerce reported Thursday that gross domestic product expanded at a 2.4 percent annual rate in the first three months of the year, down a tenth of a point from an initial estimate released at the end of April… (Read more.)

Three Weeks of Claim Gains: Is the Labor Recovery Slowing? The United States Labor Department will release its report on the state of hiring and unemployment for May next Friday, leaving economists wondering where the roller coaster rise and fall of unemployment claims experienced this month left the labor market. Last week, for the third straight week, the number of Americans filing for initial unemployment benefits rose, signaling that the job market may be softer than expected. Applications for jobless benefits increased 10,000 to 354,000, according to Labor Department figures released Thursday… (Read more.)

Is Europe Finding its Economic Swagger Back? The European Union finally found some good news today after the OECD told the group earlier this week that its member states were holding the world economy back. Sentiment was up throughout the euro zone on Thursday, as countries appeared to be getting more optimistic about their own economic prospects. Economic morale passed the expectations of analysts and rose to 89.4, just beating the predicted 89… (Read more.)

Here’s your Cheat Sheet to today’s top stock stories

Tesla (NASDAQ:TSLA) stock rose half a percent today after unveiling plans for more charging stations for the luxury electric cars. The network of charging stations will not only triple its coverage area, but it will also add more fast-charging stations to well-traveled routes. By the end of 2013, the company predicts a Tesla owner will be able to drive from LA to NY using only Superchargers, and of course, Model S will fill up for free… (Read more.)

Big Lots (NYSE:BIG) shares fell about 9 percent today, with net income falling 21 percent in the first quarter. The company blames bad weather for the losses, a familiar target of blame for retailers. The company also lowered its second quarter and full year earnings estimates… (Read more.)

Facebook (NASDAQ:FB) closed the day up 5.27 percent following upgrades from analysts at both Jefferies and BMO Capital Markets. Jefferies upgraded shares from Hold to Buy with a $32 price target, while BMO upgraded shares from Market Perform to Outperform with a $33 price target. Both companies cited improving advertising prospects.

MidAmerican Energy Holdings Company, a subsidiary of Berkshire Hathaway (NYSE:BRKA)(NYSE:BRKB), announced that they have reached an agreement to purchase NV Energy (NYSE:NVE), an energy company that provides electricity and natural gas to 1.3 million customers in Nevada. MidAmerican will purchase all outstanding shares of NV Energy’s common stock for $23.75 a share in a deal that was approved by both companies’ boards of directors and has an enterprise value of $10 billion. NV Energy will continue to operate under its current name and remain headquartered in Las Vegas… (Read more.)

KKR & Co. (NYSE:KKR) announced that they are hiring former CIA director David Petraeus as chairman of the new KKR Global Institute. The Global Institute will focus on the investment implications of environmental, social, and governmental issues within a global firm that looks to take on risk for new opportunities. Petraeus will work with the Global Institute team and also support investment teams in the diligence process, especially when the Firm is looking to invest in new geographies.

EMC Corp. (NYSE:EMC) has increased the size of its share repurchase authorization from $1 billion in 2013 to $6 billion over a three-year period, and initiated a quarterly dividend of $0.10 per share. EMC also announced that it will add debt to its capital structure in the near term. The company stated that the net effect of the repurchase program and dividend payment is not expected to have an impact on expected 2013 revenue of $23.5 billion and adjusted earnings of $1.85 per share.

Dish Network Corporation (NASDAQ:DISH) has renewed efforts in its fight with Sprint Nextel Corp. (NYSE:S) over the wireless provider Clearwire Corp. (NASDAQ:CLWR). Dish wrote a letter to Clearwire offering to buy the company for $4.40 per share in cash, a dollar more per share than Sprint has offered. The letter was written in light of Clearwire’s upcoming shareholder meeting on May 31 and says that Dish’s offer “can provide a meaningfully superior alternative to your stockholders” as opposed to the Sprint deal.

Costco (NASDAQ:COST) closed the day down 0.95 percent after reporting fiscal third quarter financial results. Net sales increased 8 percent on the year to $23.55 billion, missing the average analyst estimate of $24.21 billion. Net income for the quarter increased 18.2 percent on the year to $1.04 per diluted share, beating the average estimate of $1.03 per share. Comparable sales increased 6 percent.

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