Stocks got a midday boost Thursday and rode it to the close as strong retail sales figures balanced out an unexpected rise in weekly jobless claims data.
The Dow Jones Industrial Average overcame an early dip to finish on the upside, gaining 30 to close at 10927. The S&P 500 rose 4 to 1186 and the Nasdaq picked up 6 at 2437.
The Labor Department said initial claims for jobless benefits rose unexpectedly last week, jumping 18,000 to a seasonally-adjusted 460,000. Economists generally say claims must fall to around 400,000 in order to be consistent with a stable labor market.
In a positive measure, U.S. retailers reported strong year-over-year gains in March sales at stores opened more than a year as indications continue to grow that consumers are spending again. The S&P Retail index hit a 52-week high.
European stocks were lower, as was the euro, as the markets’ attention focused firmly on Greece and its debt problems, which pushed up the country’s borrowing costs to new record levels.
Strategists at Deutsche Bank said they believe international support for Greek debt will continue to wane until there are explicit details of a support package.
“The market is in the mood to force the hand of the authorities over this,” Deutsche Bank said. “Greek banks this week asking for assistance from their government is ironic as they were the main buyer of last week’s seven-year deal. So once the major and largest marginal buyer of stressed Greek government debt [are] required help themselves then one can see how the funding problem can become a vicious circle,” it added.
In currency markets, the dollar was at 93.02 yen, from 93.30 yen late Wednesday in New York. The euro was at $1.3322, from $1.3354, and the pound was at $1.5204, from $1.5247.
Asian markets closed lower Thursday, pressured by Wednesday’s drop on Wall Street, while weaker-than-expected economic data helped to drag Japan’s benchmark stock index to its lowest intraday level in a week.
Japan’s core machinery orders in February fell 5.4% on-month, fueling selling in Tokyo. The data missed expectations for a 3.9% rise — a discouraging sign for capital expenditure.
Japan’s Nikkei Stock Average of 225 companies closed down 1.1% while Australia’s S&P/ASX 200 ended 0.5% lower, Hong Kong’s Hang Seng Index fell 0.3%, Taiwan’s main index fell 0.8% and the Shanghai Composite finished 0.9% lower. South Korea’s Kospi Composite was a lone advancer among the major indexes, up 0.4%.
Crude oil futures dropped 37 cents to $85.51 a barrel. Gold futures closed nearly flat.
Dow Jones Newswires contributed to this report.
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