Stocks are up by solid margins in early afternoon trading on Thursday, as traders were encouraged by jobs data indicating some improvement in the battered labor market. The major averages are all in positive territory, but they remain off their best levels of the session.
The buying interest in the markets came after a report from the Labor Department showed that initial jobless claims unexpectedly increased last week but remained below the 500,000 level. The data provided further signs of stabilization in the labor market.
Separately, the Commerce Department released its report on U.S. international trade in goods and services in the month of October, showing that the U.S. trade deficit unexpectedly narrowed compared to the previous month amid a notable increase in the value of exports.
In other news, treasury Secretary Timothy Geithner testified before a Congressional oversight committee regarding appropriations of the TARP program, along with other government actions taken in the wake of the financial crisis.
This afternoon, the Treasury Department will release its budget report, a monthly account of the surplus or deficit of the federal government, at 2 p.m. ET. Economists estimate the deficit to have narrowed to $131.6 billion for November.
The major averages have all seen choppy movement in recent trading, remaining more or less rangebound. The Dow is currently up 65.00 at 10,402.05, the Nasdaq is up 13.01 at 2,196.69 and the S&P 500 is up 6.58 at 1,102.53.
Sector News
Health insurance stocks have extended their early gains, with the Morgan Stanley Healthcare Payor Index now up by 2.7 percent. The index is moving higher for a fifth straight session, reaching a fourteen-month intraday high.
Significant strength is also visible among railroad and oil service stocks, with the Dow Jones Railroads Index and the Philadelphia Oil Service Index rising by 1.2 percent and 1.1 percent, respectively, offsetting recent losses.
Natural gas stocks are also notably higher, with the NYSE Arca Natural Gas Index up by 1 percent. With the gain, the index is bouncing off of the one-month closing low set in the previous session.
The day's advance comes after the Energy Information Administration reported that natural gas inventories fell by 64 billion cubic feet in the week ended December 4th. The move surprised analysts, who had expected inventories to decline by 47 billion cubic feet.
Most of the other major sectors have also advancing, while some gold and banking stocks are bucking the uptrend by the broader markets.
Stocks In The News
Gildan Activewear (GIL) is surging higher in early afternoon trading after the company reported adjusted fourth quarter EPS of $0.35, edging out the $0.33 expected by analysts. The stock has shot up by 11.8 percent, setting a thirteen month intraday high.
Pall Corp. (PLL) is also on the rise after the company reported first quarter earnings in-line with analyst forecasts while providing full year guidance that above expectations. Shares are up by 6.4 percent, bouncing off of yesterday's six week closing low.
On the other hand, Eli Lilly & Co. (LLY) has come under pressure after the lower end of the company's 2009 guidance fell short of Wall Street expectations. The stock has slipped by 3.7 percent, setting a one-month intraday low.
In Focus: Jobless Claims, Trade Deficit
As mentioned above, the Labor Department said that initial jobless claims rose to 474,000 from the previous week's unrevised figure of 457,000. The modest increase came as a surprise to economists, who had been expecting jobless claims to edge down to 455,000.
With the increase, jobless claims moved back to the upside after hitting their lowest level in over a year in the previous week.
Peter Boockvar, equity strategist for Miller Tabak, said, "While initial claims were above expectations, they are below 500k for a 3rd month and confirm the slowdown in firings."
Also this morning, the Commerce Department reported that the U.S. trade deficit narrowed to $32.9 billion in October from a revised $35.7 billion in September. Economists had been expecting the deficit to widen to $36.8 billion from the $36.5 billion originally reported for the previous month.
Other Markets
In overseas trading, stocks markets across the Asia-Pacific region turned in a mixed performance on Thursday. Japan's benchmark Nikkei 225 Index fell by 1.4 percent, while China's Shanghai Composite Index rose 0.5 percent.
Meanwhile, the major European markets saw notable gains. The U.K.'s FTSE 100 Index rose by 0.8 percent, while the German DAX Index and the French CAC 40 Index both closed up by 1.1 percent.
In the bond markets, treasuries are showing significant weakness ahead of the results of today's thirty-year bond auction. Subsequently the yield on the benchmark ten-year note, which moves opposite of its price, is trading at 3.482 percent, posting a gain of 5.9 basis points.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.