U.S. Stocks Gain as Improving Job Market Lifts Sentiment
U.S. stocks edged up during early trading hours on Thursday after weekly jobless claims showed a sharp drop, emphasizing the recovery in the U.S. labor market.
At last check, the Dow Jones Industrial Average Index gained 0.31% to 13386.03; the Nasdaq Composite Index edged up 0.63% to 3070.91 while the S&P 500 Index added 0.57% to 1440.66
A data provided by the U.S. Labor department showed that weekly jobless claims for the week ended October 6 fell by 30,000 to seasonally adjusted rate of 339,000, the lowest level since Feb. 2008. Economists polled by Reuters had forecasted claims to climb to 370,000.
The U.S. trade deficit widened by $44.2 billion in August, according to data provided by the U.S. Commerce Department. The figure was largely in line with economists’ consensual forecast. The report showed that both exports and imports contracted by 0.1%.
Elsewhere in Europe, all major benchmark indexes traded in green territory as the market sentiment rode high after International Monetary Fund’s (IMF) Chief said on Wednesday that Greece should be provided some extra time in order to meet its deficit target. Spain’s benchmark index Ibex 35 also edged up on Thursday, paring initial losses amid growing pressure to request for a bailout. On Wednesday, Standard & Poor cut Spain’s debt rating by a notch. It is widely speculated that a latest downgrade would force the government of Spain to call for a bailout as inaction at this stage will result in sharp increase on its borrowing costs.
In some corporate news, shares of Sprint Nextel Corporation (NYSE: S) leaped 13% after a report carried in the Wall Street Journal revealed that Japan’s Softbank is in “advanced” talks to acquire a $12.8 billion stake in the wireless communications company.
Winnebago Industries Inc. (NYSE: WGO) reported fiscal fourth quarter results that fell short of analysts’ estimations. However, shares edged up almost 2.85%.
Ruby Tuesday Inc. (NYSE: RT) fell on Thursday after the company announced fiscal quarter results. Although results matched Street’s expectations, the company projected a lackluster outlook on full-year earnings and same-store-sales.
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Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.
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