* Supervalu shares rally after results, outlook
* McDonald's LatAm franchisee rises 26 pct in debut
* U.S. report hits Goldman, pressures financials
* Jobless claims unexpectedly rise in latest week
* Dow up 0.2 pct, S&P up 0.1 pct, Nasdaq off 0.04 pct
* For up-to-the-minute market news see []
(Updates prices, changes comment, byline)
By Rodrigo Campos
NEW YORK, April 14 (Reuters) - The Dow and S&P edged
higher in late trading on Thursday as concerns about higher
inflation prompted investors to buy staples and health shares,
but a Senate investigation of Goldman Sachs hurt financials.
An unexpected rise in jobless claims added to the bearish
sentiment that kept gains in check.
The Dow industrials' top percentage gainers were Coca-Cola
Co <KO.N>, up 1.5 percent, Kraft Foods Inc <KFT.N>, up 1.7
percent and Merck & co <MRK.N>, up 1.5 percent.
The S&P 500 fell almost 1 percent earlier but bounced off
near 1,300, a level that provided support in early March as
buyers found it attractive.
Late Wednesday, a report from a Senate subcommittee said
Goldman Sachs <GS.N> had sold mortgage-linked derivatives to
clients at inflated prices and misrepresented the nature of
the deals. []
Goldman shares fell 2.9 percent to $155.59 and were the
biggest drag on the S&P financial sector <.GSPF>, which was
down 0.8 percent and the worst-performing of the benchmark's
ten main sectors.
"Goldman down $4 is a big hit, but they're not the only
ones taking it on the chin," said Greg Harmon, president and
founder of Dragonfly Capital Management in Shaker Heights,
Ohio.
He said the report on Goldman was probably dragging the
financial sector lower and cited discussion among traders that
the quality of earnings for JPMorgan Chase <JPM.N>, which
reported Wednesday, put a damper on hopes for good numbers
from Bank of America <BAC.N> when it reports Friday.
The Dow Jones industrial average <> rose 21.95 points,
or 0.18 percent, to 12,292.94. The Standard & Poor's 500
<.SPX> inched up 1.53 points, or 0.12 percent, to 1,315.94.
The Nasdaq Composite <> dipped 0.86 of a point, or 0.03
percent, to 2,760.66.
Google <GOOG.O> is scheduled to report results after the
market's close. Analysts forecast the Internet company will
report revenue growth of 25 percent. []
The stock rose 0.1 percent to $577, but options activity
suggested investors were bracing for a drop in the share price
after Google's earnings report.
"There has been notably more put buying over the past two
weeks leading up to earnings for Google," said Ryan Detrick,
senior technical analyst at Schaeffer's Investment Research in
Cincinnati, Ohio.
Supervalu Inc <SVU.N> forecast fiscal-year earnings above
Wall Street's expectations after its quarterly profit fell
less than feared. The supermarket operator's shares shot up
17.4 percent to $10.66.
Shares of Arcos Dorados Holdings Inc <ARCO.N>, a large
South American franchisee of fast-food chain McDonald's Corp
<MCD.N>, jumped 24.7 percent to $21.20 in their stock market
debut as investors clamored for exposure to the famous brand
in a region with booming consumer spending.
McDonald's, a Dow component, rose 0.2 percent to $77.03.
Ford Motor Co <F.N> fell 1.8 percent to $14.71 after the
company agreed to expand a recall of the best-selling F-150
pickup trucks. U.S. safety regulators said the recall was due
to a possible short circuit that could cause airbags to deploy
unexpectedly. []
On the economic front, a government report showed a
surprising jump in U.S. jobless claims, raising some questions
among investors about the health of the labor market recovery.
Economists said the number could be a one-time occurrence.
[]
The core U.S. Producer Price Index rose faster than
expected in March as fuel prices rose strongly, adding to
concerns about inflation.
(Reporting by Rodrigo Campos; Additional reporting by Angela
Moon; Editing by Jan Paschal)
