Stocks fluctuate after weekly unemployment claims dip slightly, but remain high

Stocks see-saw after mixed jobs report

NEW YORK — Stocks fluctuated in a tight range Thursday after traders received one mixed report on the jobs market and prepared for a second report on the sector later this week.

The Dow Jones industrial average rose 13 points in early morning trading. Broader indexes were are little changed.

The Labor Department said initial 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, falling slightly below the level economists had forecast. That was somewhat encouraging, but not enough to extend stocks big rally into a second day.

Major indexes jumped more than 2 percent Wednesday after a surprising rise in manufacturing activity.

Thursday’s muted move is not surprising because the government’s monthly report on employment is due out Friday. Traders often limit big traders 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.

In morning trading, the Dow rose 13.17, or 0.1 percent, to 10,282.64. The Standard & Poor’s 500 index rose 3.79, or 0.4 percent, to 1,084.08, while the Nasdaq composite index rose 5.78, or 0.3 percent, to 2,182.62.

Rising stocks narrowly outpaced those that fell on the New York Stock Exchange, where volume came to 101.8 million shares.

Bond prices dipped. The yield on the 10-year Treasury note, which moves opposite its price, rose to 2.62 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 stuck in a tight range, investors were targeting individual stocks after the monthly retail sales reports and the latest acquisition activity.

Costco Wholesale Corp. shares jumped 86 cents to $58.65 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 83 cents, or 3.4 percent, to $25.10.

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 17 cents to $11.95, while Hewlett-Packard rose 1 cent to $39.22.

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 $4.39, or 23.3 percent, to $23.25.