U.S. stocks rise again

Adam Geller

Thursday, Dec. 4, 2003 | 10:53 a.m.

NEW YORK -- Stocks moved higher today as investors looked past a new report on jobless claims and mixed November retail figures.

The gains came a day after the Nasdaq composite index brushed the 2,000 level for the first time in nearly two years, and the Dow Jones industrial average approached the 10,000 mark, not reached since May of last year.

In midday trading today, the Dow was up 36.96, or 0.4 percent, to 9,910.38, after gaining nearly 20 points in the previous session. The last time the Dow closed above 10,000 was May 24, 2002.

The broader market was also higher. The Nasdaq rose 2.49, or 0.1 percent, to 1,962.74, after finishing Wednesday 20 points lower. The last time the tech-heavy index closed above 2,000 was Jan. 15, 2002.

The Standard & Poor's 500 index rose 3.31, or 0.3 percent, to 1,068.04, following a 2 point decline Wednesday.

Analysts said the rise in stocks is a sign that investors were looking beyond today's retail and claims figures to Friday's expected release of November payroll figures and next weeks' meeting of the Federal Reserve.

"There's a lot of drama building up here and so today is kind of a meandering day," said Larry Wachtel, market analyst at Wachovia Securities.

While the retail results were mixed, investors have gained confidence and will focus instead on stores' reports further into the holiday season, said Jack Caffrey, equity strategist for the J.P. Morgan private bank.

"I think people are willing to look forward today," he said.

The government reported today that more workers filed new claims for jobless benefits last week, but at a level that continues to suggest the pace of layoffs has eased. For the week ending Nov. 29, applications for benefits rose by a seasonally adjusted 11,000 to 365,000. That is considerably lower than the high of 459,000 reached in April. That report precedes by a day the government's report of figures on job creation in November and the monthly unemployment rate.

Also today, a number of major retailers reported sales figures for November, mixed results that clouded previously upbeat forecasts for the holiday shopping season.

Wal-Mart, the world's largest retailer, reported a 3.9 percent sales gain at stores open at least a year, known as same-store sales. The company's stock rose 21 cents to $52.90.

Gap Inc. said its same-store sales rose 6 percent for the month. Its stock was up 6 cents to $21.24 in early trading.

But many other retailers reported weaker results. Sears, Roebuck and Co. reported same-store sales fell 3.6 percent. Its stock lost $1.69 to $53.17. Kohl's Corp.'s same-store sales declined 4.4 percent. Its stock rose $1.51 to $46.80.

Federated Department Stores Inc., which reported that its same-store sales slipped 0.1 percent, saw its stock lose 83 cents to $48.78.

Other active stocks included Qualcomm Inc., which rose $4.37 to $48.84 after the company boosted its quarterly earnings and sales estimates.

Declining issues slightly outnumbered advancers on the New York Stock Exchange, where volume came to 551.30 million shares, down from 578.99 million at the same point Wednesday.

The Russell 2000 index, which tracks smaller company stocks, fell 1.08 to 544.11.

Overseas, Japan's Nikkei stock average finished today up 1 percent. In afternoon trading in Europe, France's CAC-40 lost 0.2 percent, Britain's FTSE 100 declined 0.3 percent and Germany's DAX index was essentially unchanged.