Wall Street Eases Up Thursday          05/16 09:46

   U.S. stocks are drifting Thursday as momentum cools following their jumps to 
records the day before.

   NEW YORK (AP) -- U.S. stocks are drifting Thursday as momentum cools 
following their jumps to records the day before.

   The S&P 500 was 0.1% higher in early trading. The Dow Jones Industrial 
Average was up 36 points, or 0.1%, as of 9:35 a.m. Eastern time, and the Nasdaq 
composite was virtually flat. All three set all-time highs on Wednesday.

   Walmart climbed 6.4% after reporting stronger profit for the latest quarter 
than analysts expected. It also said its revenue for the year could top the 
forecasted range it had earlier given. That could be an encouraging signal for 
the broader economy, as worries have risen about whether U.S. households can 
keep up with still-high inflation and more expensive credit-card payments.

   Target, which reports its quarterly results next week, was also rising, 
along with other retailers like Dollar General.

   Chubb rose 5.5% after Warren Buffett's Berkshire Hathaway disclosed it had 
built an ownership stake in the insurer.

   Stronger-than-expected profit reports have been one of the main reasons U.S. 
stock indexes jumped through May to records following their tough April. 
Another has been revived hopes that the Federal Reserve will be able to cut its 
main interest rate at least once or twice this year.

   A string of worse-than-expected reports on inflation at the start of the 
year had put the potential for such cuts in jeopardy, but some more encouraging 
data has since arrived.

   Treasury yields have eased in May as hopes rose that the economy could hit 
the hoped-for sweet spot, where it cools enough to stifle high inflation but 
not so much that it causes a bad recession. Yields were holding relatively 
steady Thursday following some mixed data on the economy.

   One report showed slightly more workers applied for unemployment benefits 
last week than economists expected, though the number remains low compared with 
history. Others said homebuilders broke ground on fewer projects last month 
than expected, manufacturing growth in the mid-Atlantic region was weaker than 
hoped and import prices rose more than forecast.

   "Today's numbers were in line with the overall theme of the week---nothing 
dramatic, but showing signs of a steady-to-cooling economy," said Chris Larkin, 
managing director, trading and investing, at E-Trade from Morgan Stanley.

   The yield on the 10-year Treasury was holding steady at 4.35%. The two-year 
yield, which moves more closely with expectations for action by the Fed, rose 
to 4.77% from 4.72% late Wednesday.

   On the losing end of Wall Street, Deere fell 2.2% despite reporting stronger 
profit for its latest quarter than expected. It cut its forecast for profit 
over the full fiscal year below analysts' estimates, as farmers buy fewer 
tractors and other equipment.

   GameStop and AMC Entertainment were also sliding for a second straight day, 
pulling back further from their jaw-dropping starts to the week. They've been 
moving more on excitement drummed up by investors than any changes to their 
financial prospects.

   GameStop fell 18%, though it's still up 85% for the week so far. AMC 
Entertainment lost 9.8%.

   In stock markets abroad, indexes were modestly lower in much of Europe after 
mostly rising in Asia. Hong Kong's Hang Seng jumped 1.6% after reopening 
following a holiday, while Japan's Nikkei 225 rose 1.4%.