Stocks rise on upbeat jobs, retail reports
NEW YORK -- Stocks rose modestly Thursday after government reports provided upbeat data on new unemployment claims and retail sales.
The unemployment report said initial claims for unemployment insurance dropped last week by 24,000 to a seasonally adjusted 601,000
In the retail sales report, the Commerce Department said retail sales rose 0.5% after falling a revised 0.2% in April, previously reported as a 0.4% drop.
Wall Street is trying to bounce back after a moderate decline Wednesday resulting from growing worries about rising interest rates and energy prices. European markets were up fractionally Thursday after a mixed showing in Asia.
Retail sales are seen as a key indicator of economic improvement because consumer spending accounts for more than two-thirds of economic activity. It is widely believed that improved spending is needed to help end the ongoing recession.
Bond prices fell Thursday morning. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.97% from 3.96% late Wednesday. The yield on the three-month T-bill, considered one of the safest investments, rose to 0.18% from 0.17% late Wednesday.
A weakening dollar has also added to inflationary fears because it can drive up the price of imported goods and commodities. The dollar fell against other major currencies, while gold prices rose. Oil prices rose 66 cents to $71.99 a barrel in premarket electronic trading on the New York Mercantile Exchange.
Meanwhile, overseas, Japan's Nikkei stock average fell 0.1%. In afternoon trading, Britain's FTSE 100 rose 0.4%, Germany's DAX index gained 0.5%, and France's CAC-40 rose 0.2%.
