Stocks creep higher after jobless claims drop
NEW YORK — The U.S. stock market headed up in early Thursday trading as investors received more encouraging news on the economy. The slight gains come a day after the Federal Reserve signaled that it’s in no rush to raise interest rates.
KEEPING SCORE: As of 9:55 a.m. Eastern time, the Standard & Poor’s 500 index was up six points, or 0.3 percent, to 2,007. The Dow Jones industrial average rose 60 points, or 0.4 percent, to 17,216. The Nasdaq composite rose 16 points, or 0.3 percent, to 4,577.
ECONOMICS: Fewer Americans filed first-time claims for unemployment benefits last week, according to the Labor Department. Weekly applications fell 36,000 to 280,000, below economists’ forecasts. The four-week average, a less volatile measure, also dropped.
EUROPE: Britain’s FTSE 100 added 0.4 percent while Germany’s DAX rose 0.8 percent. France’s CAC 40 advanced 0.5 percent.
SCOTTISH VOTE: Scotland opened polling stations on Thursday for a referendum on whether the country will leave its union with England, Wales and Northern Ireland and become an independent state. The first exit polls will be released after voting closes at 10 p.m. local time, or 2100 GMT. Opinion polls have suggested the “Yes’ campaign favoring independence is neck and neck with the `No’ campaign that wants Scotland to stay in the United Kingdom.
ONE VIEW: “A `yes’ vote is likely to weigh heavily on the sterling and equities. A `no’ vote should result in a relief rally and is likely to be positive for the sterling and equities,” said IG strategist Stan Shamu in a commentary. The pound, also known as sterling, was up 0.3 percent on the day in London, at $1.6324.
BIG DEBUT: Alibaba Group is expected to wrap up its mammoth initial public offering later Thursday, then make its debt on the New York Stock Exchange on Friday under the symbol “BABA.” The Chinese e-commerce company could raise as much as $21.8 billion from institutional investors, making it the largest IPO on record in the U.S.
ASIA’S DAY: Hong Kong’s Hang Seng finished 0.9 percent lower and South Korea’s Kospi dropped 0.7 percent. Japan’s Nikkei 225 outperformed, gaining 1 percent as the yen traded at a six-year low against the dollar. Markets in mainland China, India and Southeast Asia also rose.
FED WATCH: On Wednesday, the Federal Reserve maintained its stance of keeping short-term interest rates near zero for “a considerable time.” But it did raise its estimate for what the Fed’s benchmark interest rate could be at the end of 2015: to 1.38 percent, up from its last estimate of 1.13 percent. The Fed has kept its benchmark rate at a record-low level near zero since the 2008 financial crisis to support economic recovery.
Most economists expect the first rate increase to come by the middle of next year. Before the Fed’s meeting, there was speculation the Fed might signal an earlier start.
OIL: Benchmark U.S. crude was down 25 cents to $94.17 a barrel on the New York Mercantile Exchange. The contract dropped 46 cents on Wednesday. The price of oil fell after the Energy Department reported a 3.7 million barrel increase in U.S. crude inventories last week. Most analysts had expected a decline, typical for this time of year.
CURRENCIES: The euro rose to $1.2871 from $1.2840 late Wednesday. The dollar rose to 108.84 yen from 108.63 yen.
