US stocks up on jobless claims, retail sales data
7 minutes ago
By SARA LEPRO
AP Business Writer
(AP:NEW YORK) Stocks are higher following upbeat readings on the job market and sales at major retailers.
Weekly claims for unemployment benefits unexpectedly dropped last week to their lowest level since January. And many retailers, including Wal-Mart Stores Inc., are reporting better-than-expected April sales.
The reports come as investors await the formal release of results from the government's stress tests of bank balance sheets. The release is expected after the closing bell.
Federal Reserve Chairman Ben Bernanke, at the start of trading, called for a holistic approach to strengthening oversight of the banking system to prevent future financial crises. He said regulators must sharpen their assessments of individuals banks and also examine the financial system as a whole to detect risks that could endanger the normal flow of credit, market operations and commerce.
The day's news provided more fodder for the market's massive two-month rally that has lifted the major indexes more than 25 percent from 12-year lows in early March.
In the first half-hour of trading, the Dow Jones industrial average rose 8.52, or 0.1 percent, to 8,520.80.
Broader stock indicators also rose. The Standard & Poor's 500 index rose 6.97, or 0.8 percent, to 926.50, and the Nasdaq composite index rose 4.73, or 0.3 percent, to 1,763.83.
In economic news, the Labor Department's tally of new jobless claims fell to a seasonally adjusted 601,000 from the previous week's 631,000. Economists had been expecting a jump to 635,000. Still, the number of unemployed workers getting benefits climbed to a new record.
Wal-Mart said sales of Easter merchandise and higher traffic helped its sales jump 5 percent, much more than the 2.9 percent rise analysts had forecast.
Other retailers, including Stage Stores Inc. and Wet Seal Inc., posted smaller sales drops than analysts were anticipating.
Consumer spending, which accounts for more than two-thirds of economic activity, is an important gauge on the health of the economy.
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