By Peter McKay
Stocks opened lower Thursday, hurt by a surprisingly large rise
in weekly jobless claims and worries about Greece's credit
woes.
The market's losses were tempered, however, by a jump in airline
stocks following reports that UAL and US Airways Group are in
merger discussions.
UAL shares (UAUA) rose 6.3% on the news, while US Airways (LCC)
was up 12%.
The Dow Jones Industrial Average (DJI), which entered Thursday's
trading on a two-day losing streak, recently shed 36 points, or
0.3%, to trade at 10860.
The Dow Jones Transportation Average edged up 0.1%.
The Nadsaq Composite Index (RIXF) was off 0.4%.
The S&P 500 (SPX) fell 0.5%, hurt by selling in every
sector.
Weakness in overseas markets set a bearish tone prior to the
opening bell in New York.
In particular, Europe was weak due to worries about Greece, with
the Stoxx Europe 600 Index down more than 1%.
Strategists at Deutsche Bank said they believe international
support for Greek debt will continue to wane until there are
explicit details of a support package from its neighbors.
In the U.S., the Labor Department said Thursday morning that
initial claims for jobless benefits rose unexpectedly last week,
jumping 18,000 to a seasonally adjusted 460,000.
Economists generally say claims must fall to around 400,000 in
order to be consistent with a stable labor market.
Separately, U.S. retailers reported strong year-over-year gains
in March sales at stores opened more than a year as indications
continue to grow that consumers are spending again. However, the
strong sales failed to lift many retail bellwethers' shares.
J.C. Penney (JCP) fell 4.2% despite increasing its first-quarter
sales and earnings forecasts as the retailer said its same-store
sales rose in March.
Kohl's (KSS) fell 1.1% after raising its first-quarter earnings
guidance after reporting double-digit-percent sales growth for
March.
In other markets, the dollar rallied versus against the euro but
slipped versus the yen.
Oil prices slipped below $85 a barrel. Treasury prices edged up,
with the 10-year note gaining 4/32 to yield 3.849%.