Stocks trade in tight range after 5 days of gains; jobless claims rise, UPS boosts view

Stocks drift on higher jobless claims, UPS outlook

NEW YORK — Stocks are trading in a tight range after mixed economic reports gave investors an excuse to take a break from buying after five days of gains.

Analysts say Thursday that a pause in the market’s rise is overdue. The Dow Jones industrials on Monday closed above 11,000 for the first time in a year and a half.

The Labor Department says initial claims for unemployment benefits rose unexpectedly for a second straight week.

An encouraging earnings forecast from UPS is giving stocks support. As the world’s largest shipping company, UPS’s results are seen as an early indicator of business activity.

At midday, the Dow is down 1 at 11,122. The Standard & Poor’s 500 index is up 1 at 1,211. The Nasdaq composite index is up 8 at 2,513.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.

NEW YORK (AP) — Stocks traded in a tight range Thursday after mixed economic reports gave investors an excuse to take a break from buying after five straight days of gains.

Analysts said a break in the market’s upward push was overdue. The Dow Jones industrial average on Monday closed above 11,000 and the Standard & Poor’s 500 index topped 1,200 on Wednesday for the first time in 18 months.

The Labor Department reported that initial claims for unemployment benefits rose unexpectedly for the second straight week. Figures on industrial production also fell short of expectations but did show growth for the ninth straight month.

The downbeat economic news is being tempered by an encouraging earnings outlook from UPS Inc. and a strong regional manufacturing report.

UPS released strong first-quarter results early and said it has renewed optimism for the year. As the world’s largest shipping company, UPS’s results are seen as an early indicator of overall business activity.

Investors placed more bets on banks after JPMorgan Chase & Co. posted stronger earnings Wednesday. Shares of Citigroup Inc. rose above the psychological barrier of $5 for the first time since October.

A second straight week of weak employment numbers kept stocks in check. The government said first-time claims for jobless benefits rose by 24,000 to 484,000 last week, the highest level since late February. Economists polled by Thomson Reuters forecast a drop to 440,000, on average.

Charlie Smith, chief investment officer at Fort Pitt Capital in Pittsburgh, said the market’s steady advance in the past two months is welcome because it means investors aren’t getting overly optimistic.

“We are seeing a straight line (higher) but there’s not a whole lot of exuberance to it,” he said. “There is a tremendous amount of skepticism about the market and that’s a good thing.”

In late morning trading, the Dow fell 5.44, or 0.1 percent, to 11,117.67. The S&P 500 rose 0.28, or less than 0.1 percent, to 1,210.93, while the Nasdaq composite index rose 7.45, or 0.3 percent, to 2,512.31.

Bond prices rose, pushing their yields lower. The yield on the benchmark 10-year Treasury note fell to 3.84 percent from 3.87 percent late Wednesday.

The dollar and gold both rose.

Crude oil fell 22 cents to $86.51 per barrel on the New York Mercantile Exchange.

The Federal Reserve said industrial production rose 0.1 percent in March. Despite the continued growth, the number fell short of analysts’ expectations. Economists predicted production at the nations’ factories, mines and utilities would rise 0.7 percent in March.

Meanwhile, the Philadelphia Federal Reserve said manufacturing in move region has increased. Its index of manufacturing conditions rose to 20.2 from 18.9 in March.

Among stocks in the news, UPS rose $4.13, or 6.3 percent, to $69.58.

Citigroup rose 12 cents, or 2.4 percent, to $5.05.

Falling stocks narrowly outpaced those that rose on the New York Stock Exchange, where volume came to 327.2 million shares, compared with 324.1 million traded at the same point Wednesday.

The Russell 2000 index of smaller companies rose 0.92, or 0.1 percent, to 723.32.

Overseas, Britain’s FTSE 100 rose 0.4percent, Germany’s DAX index rose 0.2percent, and France’s CAC-40 rose 0.3 percent. Japan’s Nikkei stock average rose 0.6 percent.