Stock market stable despite jobs numbers

NEW YORK -- Stocks opened slightly higher Thursday, unfazed by a worse-than-expected report on weekly jobless claims.

Despite the report from the Labor Department showing initial unemployment claims rising last week, investors waded gently back into the market in early trading, sending indicators higher.

The Labor Department says new claims for unemployment benefits jumped to 637,000 last week, more than the 610,000 economists forecast.

The number of people seeking unemployment benefits also grew faster than expected, increasing to 6.56 million, while continuing claims hit a 15th consecutive record.

Stocks tumbled Wednesday after the Commerce Department said retail sales unexpectedly fell in April for the second straight month, while a separate report showed home foreclosures on the rise.

The twin hits to two key areas of the economy — consumer spending and the ailing housing market — led investors to drop stocks and seek the shelter of bonds, putting on hold a two-month rally that has sent the Dow Jones industrial average spiking 31%, the markets biggest short-term jump since the Great Depression.

Wal-Mart had been performing better than most retailers during the ongoing recession. It shares fell 4 cents to $49.99.

In morning trading, the Dow Jones industrial average rose 38.94, or 0.47%, to 8,323.83. The Standard & Poor's 500 index rose 5.14, or 0.58%, to 889.06, while the Nasdaq composite index rose 16.53, or 0.99%, to 1,680.72.

Bond prices were mixed after rising a day earlier. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.10% from 3.12% late Wednesday. The yield on the three-month T-bill, considered one of the safest investments, rose to 0.17% from 0.16% late Wednesday.

The dollar mostly rose against other major currencies; gold prices fell.