Stocks rose slightly Thursday as jobless claims fell last week and retailers reported flat sales in March.
Also Thursday, Microsoft's (MSFT) attempts to buy Yahoo (YHOO) continued to get the market's attention. Among the many negotiations in progress, Yahoo is reportedly discussing a deal with Time Warner's (TWX) AOL, a combination of their Internet operations designed to thwart Microsoft's bid. Yahoo is also getting help from Google (GOOG) to make its Web-search more profitable. Finally, Microsoft was reportedly exploring make a new joint bid for Yahoo with Rupert Murdoch's News Corp. (NWS).
U.S. jobless claims fell 53,000 to 357,000 last week, bringing the weekly gauge of the job market below the dangerous 400,000 mark. The number is lower than expected, Action Economics said, but "the Easter holidays likely continued to distort the data."
The U.S. trade deficit widened in February to $62.3 billion from $58.95 billion in January. Imports jumped 3.1%, a number likely boosted by higher commodity prices. The weaker dollar helped push exports 2% higher. The trade deficit with China narrowed to $18.4 billion from $20.3 billion in January.
On Thursday morning, the Dow Jones Industrial Average was up 22.23 points, or 0.18%, to 12,549.49. The S&P 500 index gained 2.36 points, or 0.17%, to 1,356.85. The Nasdaq composite index rose 22.75 points, or 0.98%, to 2,344.87.
Oil prices were falling Thursday after briefly hitting an all-time high above $112 per barrel on Wednesday. On the NYMEX, a barrel of WTI crude oil was down 10 cents to $110.95.
Standard & Poor's says the market is "drifting amid many economic, financial [and] political uncertainties." One uncertainty is the state of the U.S. consumer. On Thursday, a wide range of retailers reported results, with many showing significant weakness.
Gap (GPS), for example, saw same-store sales plunge 18% last month. Sales fell 27% at its Old Navy chain and 14% at its Gap-brand stores in North America.
Wal-Mart (WMT), however, posted 0.7% higher same-store sales not including fuel. Same-store sales were up 1.1% including fuel, and total sales jumped 7.9%.
Other retailers reporting sales figures include Target Corp. (TGT), which saw same-store sales fall 4.4% and total sales rise 1.4%.
J.C. Penney (JCP) saw 12% lower same-store sales in March, while total sales dropped 10%.
Kohl's Corp.'s (KSS) same-store sales fell 16%, while total sales dropped 7.9%.
Abercrombie & Fitch (ANF) reported a 10% drop in same-store sales.
In earnings news Thursday, Bed Bath & Beyond (BBBY) reported earnings of 66 cents per share, vs. 72 cents a year ago, as same-store sales fell slightly. The retailer expects earnings of 26 to 30 cents per share next quarter.
DuPont (DD) raised its first quarter guidance from a range of $1.14 to $1.19 to $1.29 per share. The firm cited strong growth in its agriculture businesses and in emerging markets.
Major European indexes were lower Thursday. In London, the FTSE 100 index fell 1.64% to 5,885.70. Paris' CAC 40 index fell 1.29% to 4,811.93, and Germany's DAX index lost 1.57% to 6,615.68.
Stocks were mixed in Asia, with Japan's Nikkei 225 down 1.27% to 12,945.30 and Hong Kong's Hang Seng index up 0.84% to 24,187.10.
Treasury market
Treasuries were slightly higher on Thursday. The two-year note was up 02/32 to 100-02/32 for a yield of 1.730%; the 10-year Treasury rose 04/32 to 100-11/32 for a yield of 3.464%; and the 30-year bond gained 06/32 to 101-06/32 for a yield of 4.307%.