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The Dow Jones industrial average rose about 50 points, but lagged gains by the Standard & Poor’s 500 index and tech-laden Nasdaq composite index.Financial stocks rose after falling earlier in the week and lifted he KBW Bank Index, which tracks 24 of the nation’s largest banks, 3.4 percent.
Retailers Kohl’s Corp. and Urban Outfitters Inc. rose after Kohl’s and Urban Outfitters reported earnings that beat forecasts. But Wal-Mart Stores Inc. slipped after its first-quarter results failed to excite the market.
Technology shares gained after software maker CA Inc. said Wednesday that its fiscal fourth-quarter earnings rose as cost cutting stayed ahead of a drop in revenue.
The advance came as the market grappled with another reminder of the strained job market. The Labor Department’s weekly jobless claims data showed more workers filed last week for benefits than anticipated. New claims jumped to 637,000, above what economists had forecast.
The overall number of people seeking unemployment benefits grew faster than expected, increasing to 6.6 million, while continuing claims hit a 15th straight weekly record.
Some rebound was to be expected after stocks tumbled Wednesday, sending the S&P 500 index down 2.7 percent. The market was shaken by a Commerce Department report that retail sales unexpectedly fell in April for the second straight month, and by a separate report that showed home foreclosures are rising.
The twin hits to two key areas of the economy — consumer spending and the housing market — have led investors to drop stocks this week and seek the shelter of bonds. That put on hold a rally that has sent the Dow Jones industrial average spiking 31 percent off of 12-year lows reached in early March.
“Expectations got overblown and the harsh unfortunate reality is that unemployment continues to climb and that consumers remain under pressure,” said Stuart Schweitzer, global markets strategist at J.P. Morgan’s Private Bank.
In early afternoon trading, the Dow rose 52.64, or 0.6 percent, to 8,337.53. The S&P 500 index rose 10.09, or 1.1 percent, to 894.01, while the Nasdaq rose 27.76, or 1.7 percent, to 1,691.95.
About three stocks rose for every one that fell on the New York Stock Exchange, where volume came to 712.9 million shares.
Regional banks Fifth Third Bancorp and Huntington Bancshares Inc. showed some of the strongest gains. Fifth Third rose 48 cents, or 6.8 percent, to $7.50. Huntington rose 33 cents, or 7.5 percent, to $4.74.
Kohl’s rose 56 cents, or 1.3 percent, to $42.51, and Urban Outfitters advanced 83 cents, or 4.4 percent, to $19.66 after the companies posted better-than-expected quarterly results.
Wal-Mart fell $1.10, or 2.2 percent, to $48.93 after reporting first-quarter results that met analysts’ expectations. Wal-Mart had been performing better than most retailers during the recession.
Among other retailers, Macy’s Inc. rose 19 cents to $11.71, while Best Buy Co. climbed $1.62, or 4.6 percent, to $36.82.
CA, which makes software to run information technology systems, rose $1.18, or 6.8 percent, to $18.50.
In other trading, the Russell 2000 index of smaller companies rose 10.29, or 2.2 percent, to 482.11.
Bond prices were mixed after rising a day earlier. The yield on the 10-year Treasury note, a widely used benchmark for loans including home mortgages, slipped to 3.11 percent from 3.12 percent late Wednesday.
The dollar was mixed against other major currencies, while gold prices fell.
Overseas, Britain’s FTSE 100 rose 0.7 percent, Germany’s DAX index advanced 0.2 percent, and France’s CAC-40 rose 0.1 percent. Japan’s Nikkei stock average fell 2.6 percent.
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