Stocks remain moderately higher in mid-afternoon trading on Thursday, with the day's rally sparked by some silver lining in today's jobs report. The major averages are all in positive territory, looking to build on last week's gains.
Gains were jumpstarted by trader reaction to a report from the Labor Department showing 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.
In a separate report, the Commerce Department said that the U.S. trade deficit unexpectedly narrowed in October compared to the previous month amid a notable increase in the value of exports.
This afternoon, the Treasury Department revealed a record fourteenth straight monthly deficit of $120.3 billion for November, narrower than last month's $176.40 billion amid a continued decline in TARP outlays. Analysts had expected a more substantial budget shortfall, forecasting a deficit of $135.0 billion.
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. Geithner also defended his decision to extend the program until October of 2010.
The major averages have moved to the upside in recent trading, although they off the highs set shortly after the opening bell. The Dow is currently up 83.14 at 10,420.19, the Nasdaq is up 13.73 at 2,197.46 and the S&P 500 is up 8.21 at 1,104.16.
Dow Components
Nearly all of the Dow's thirty components are seeing gains in mid-afternoon trading, contributing to the solid gain being posted by the blue chip index.
Disney (DIS) is the Dow's leading percentage gainer, advancing by 3.5 percent. With the advance, the stock has broken out to its best intraday price in fourteen months.
Coca-Cola (KO) and Merck (MRK) have also set fresh benchmarks, rising by 1.6 percent and 1.3 percent, respectively. The gains have lifted the stocks to their best intraday levels in roughly eighteen months.
Alcoa (AA), Home Depot (HD), DuPont (DD) and Caterpillar (CAT) are also boosting the blue chip index, while Bank of America (BAC) is seeing the steepest loss in the index, falling by 1.1 percent. The loss has the stock poised to set a one-month closing low.
Sector News
Health insurance stocks are continuing their strong outing in mid-afternoon trading, with the Morgan Stanley Healthcare Payor Index up by 3.9 percent. The index is moving higher for a fifth straight session, reaching a fourteen-month intraday high.
The gains have come amid the decreasing likelihood of a pure public option in the healthcare reform bill being crafted in Washington.
Substantial gains also remain visible among railroad stocks, with the Dow Jones Railroads Index posting a gain of 1.4 percent, although it remains in a trading range.
The index is being helped by shares of Canadian Pacific Railway (CP), which are currently up by 2.3 percent. With the gain, the stock is moving higher for a fifth straight session and is on pace to set a fourteen-month closing high.
Natural gas, oil and airline stocks are also posting notable gains, while modest weakness is visible among electronic storage and banking stocks.
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 all 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 remain negative following the largely disappointing 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 3.457 percent, posting a gain of 3.4 basis points.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.