Stocks fluctuate after pending home sales, factory orders rise, unemployment claims dip

Stocks fluctuate after jobs, housing reoirts

NEW YORK — Stocks fluctuated in a tight range Thursday after reports on housing, manufacturing and jobs indicated the economy continues to grow, albeit slowly.

The Dow Jones industrial average fell 3 points in morning trading. Broader indexes rose.

The Labor Department said first-time claims for unemployment benefits fell slightly last week, but remain well above levels that are considered a sign of a healthy economy. Claims dipped for the second straight week. They fell slightly below the level economists had forecast, which was somewhat encouraging ahead of the monthly employment report due out Friday.

In morning trading, the Dow fell 3.03, or less than 0.1 percent, to 10,266.14. The Standard & Poor’s 500 index rose 2.60, or 0.2 percent, to 1,082.89, while the Nasdaq composite index rose 5.70, or 0.3 percent, to 2,182.54.

The number of buyers who signed contracts to purchase homes rose 5.2 percent in July after hitting a record low in June, according to the National Association of Realtors. Sales plummeted in the months following the expiration of the government’s home buyer tax credit in April and economists were expecting that trend to continue for a third straight month.

Factory orders also climbed, rising 0.1 percent in July. The rise in orders backs up Wednesday’s data that showed the manufacturing sector continues to expand. Major indexes jumped more than 2 percent Wednesday after a surprising rise in manufacturing activity.

Thursday’s moves were muted though because the government’s monthly report on employment will be released Friday. Traders often limit big moves before the jobs data because it is considered so vital to determining the health of the economy.

The monthly report is likely to provide further evidence that the jobs market remains weak. The Labor Department’s monthly data is expected to indicate employers are still not hiring workers in large numbers. Economists polled by Thomson Reuters predict the unemployment rate inched up to 9.6 percent last month from 9.5 percent in July as private employers hired just 41,000 workers last month.

The longer employers keep hiring to a minimum, the more uncertainty swirls around the pace of economic recovery. High unemployment remains the biggest hurdle to a strong, steady recovery. People worried about jobs have cut back on their spending, which had also been a drag on the economy this year. Retailers reported relatively strong monthly sales for August, though big discounts and the back-to-school shopping season might have provided just a temporary lift.

About three stocks rose for every two that fell on the New York Stock Exchange, where volume came to 179.2 million shares.

Bond prices dipped. The yield on the 10-year Treasury note, which moves opposite its price, rose to 2.63 percent from 2.58 percent late Wednesday. Its often used as a gauge to set interest rates on mortgages and other consumer loans.

With the broader market not making any big moves, investors were targeting individual stocks after the monthly retail sales reports and the latest acquisition activity.

Costco Wholesale Corp. shares jumped 71 cents to $58.50 after it said sales were helped by higher gas prices and improved international revenue. Limited Brands, which operates Victoria’s Secret and Bath & Body Works, jumped $1.11, or 4.6 percent, to $25.38.

The bidding between Hewlett-Packard Co. and Dell Inc. for data storage provider 3Par Inc. drove up 3Par’s share price. Hewlett-Packard raised its bid to $33 per share after Dell offered $32 per share.

Shares of 3Par jumped $1.57, or 4.9 percent, to $33.65. Dell fell 7 cents to $12.05, while Hewlett-Packard rose 7 cents to $39.28.

Fast food chain Burger King Holdings Inc. is selling itself to private equity firm 3G Capital for $3.26 billion, or $24 per share. Burger King shares jumped $4.52, or 24 percent, to $23.38.