Signs of an improving domestic economy are helping stocks for the second straight day.
Signs of an improving domestic economy are helping stocks for the second straight day.
The Labor Department says Thursday that initial claims for unemployment fell to 448,000 last week. Claims have fallen two straight weeks, but the report was slightly worse than the forecast of a drop to 445,000.
Hewlett-Packard's deal to buy Palm and some more upbeat earnings from companies like Motorola and Starwood Hotels & Resorts also provide evidence the economy is improving.
European debt problems remain a focus as Greece tries to complete a deal to receive bailout money.
The Dow Jones industrial average is up 43.83, or 0.4 percent, at 11,089.10. The Standard & Poor's 500 index is up 5.56, or 0.5 percent, at 1,196.92, while the Nasdaq composite index is up 16.42, or 0.7 percent, at 2,488.15.
THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.
NEW YORK (AP) — Signs of an improving domestic economy are helping stock futures for the second straight day.
The Labor Department said Thursday that initial claims for unemployment benefits fell for the second straight week, though they did not drop quite as far as predicted. First-time claims fell to 448,000 last week. Economists had forecast a drop to 445,000.
Dealmaking and earnings have also provided fresh evidence the U.S. economy is on the mend.
Hewlett-Packard Co. said late Wednesday that it is buying smart phone maker Palm Inc. in an all-cash deal. Acquisitions are a sign that the economy is recovering and companies are comfortable spending cash reserves to build their businesses.
Earnings from companies like Colgate-Palmolive and Starwood Hotels & Resorts also topped expectations, which has been a regular trend throughout earnings season.
The upbeat signs in the U.S. economy come against a backdrop of ongoing debt concerns in Europe. European stock markets rose after two days of declines. Investors worldwide remain cautious about ongoing debt problems in Europe. Spain on Wednesday was the third country this week to see its debt rating slashed by Standard & Poor's, following Greece and Portugal.
There are concerns that debt problems that are most pressing in Greece — a country awaiting access to a bailout package worth nearly $60 billion — will spread across the continent and slow a global economic recovery. European Union officials said again Thursday that Greece would have access to a bailout program that will help it avoid default. The downgrades of Greek and Portuguese debt on Tuesday sent major indexes worldwide tumbling.
Ahead of the opening bell, Dow Jones industrial average futures rose 31, or 0.3 percent, to 11,046. Standard & Poor's 500 index futures rose 6.70, or 0.6 percent, to 1,196.80, while Nasdaq 100 index futures rose 11.25, or 0.6 percent, to 2,018.00.
Colgate-Palmolive, the maker of products ranging from toothpaste to dish soap, said sales jumped worldwide. Its profit, however, fell because of a one-time charge related to foreign currency translation.
Starwood Hotels & Resorts Worldwide Inc. said its profit jumped sharply as more people checked in its hotels, including the Sheraton, W, and Westin. The hotel operator also forecast full-year results that top analysts' forecasts.
Drug maker Bristol-Myers Squibb Co. also reported a better-than-expected quarterly profit.
Dow component ExxonMobil Corp.'s profit rose during the quarter, but fell short of expectations.
Stocks are looking to extend Wednesday's gains that were driven by further signs of a domestic economic rebound. The Federal Reserve provided a more optimistic view of the recovery after its latest meeting where it kept interest rates at historic lows. Another batch of strong earnings from companies including Dow Chemical Co. and Comcast Corp. helped the Dow rise 53 points, recovering a quarter of its loss from the previous day.
Meanwhile, bond prices were trading in a narrow range. The yield on the benchmark 10-year Treasury note, which moves opposite its price, was unchanged at 3.77 percent, compared with late Wednesday.
The dollar fell against other major currencies. Gold also dipped, while oil rose.
Overseas, Britain's FTSE 100 rose 0.9 percent, Germany's DAX index gained 0.8 percent, and France's CAC-40 rose 1.1 percent. Japan's market was closed for a holiday.
