US Market

Stocks Mostly Higher After Recovering From Lower Open

Stocks have rebounded from a weak start and are mostly higher in mid-morning trading on Thursday, as the markets have focused on upbeat news from the labor market but European worries remain on traders' minds. The major averages have climbed into positive territory and are posting modest gains.

On the economic front this morning, the Labor Department reported that first-time claims for unemployment benefits showed another modest decrease in the week ended May 8th, although the number of claims exceeded estimates due to an upward revision to the previous week's data.

Initial jobless claims edged down to 444,000 from the previous week's revised figure of 448,000. Economists had expected jobless claims to slip to 440,000 from the 444,000 originally reported for the previous week.

With the modest decrease, jobless claims fell for the fourth consecutive week, further offsetting the notable increases seen in late March and early April.

Earlier in the day, RealtyTrac, an online marketplace for foreclosure properties, revealed that foreclosure filings on U.S. properties in April fell 2 percent compared to the previous year. In its U.S. Foreclosure Market Report for April, RealtyTrac said one in every 387 U.S. housing units received a foreclosure filing during the month.

In earnings news, Kohl's Corp. (KSS) reported first-quarter net income and revenues that topped Wall Street forecasts. Meanwhile, Kohl's firm issued second-quarter and fiscal 2010 guidance that was short of analyst estimates.

After the markets closed for trading in the previous session, Cisco Systems (CSCO) said its third quarter profit rose 63 percent from last year, as sales jumped 27 percent amid a pickup in global economic recovery and technology spending by corporations. The company's adjusted earnings per share came in above analyst estimates.

In other corporate news, Sybase (SY) is on the rise amid news that SAP (SAP) has agreed to acquire the company in a deal worth $5.8 billion or $65 a share.

The major averages have seen further upside in the past few minutes, rising to new highs for the session. The Dow is up 19.65 points or 0.2 percent at 10,916.56, the Nasdaq is up 7.70 points or 0.3 percent at 2,432.72 and the S&P 500 is up 1.59 points or 0.1 percent at 1,173.26.

Sector News

Airline stocks are seeing a strong outing in mid-morning trading, driving the NYSE Arca Airline Index up by 1.4 percent. The index is further recouping recent losses, setting a nine-day intraday high.

Steel, internet, brokerage and electronic storage stocks have also moved to the upside, while weakness remains visible among housing, trucking and commercial real estate stocks.

Notably, the Philadelphia Housing Sector Index is down by 1 percent, offsetting the majority of yesterday's rally.

Stocks Driven By Analyst Comments

Teradata (TDC) is on the rise in morning trading after being upgraded at Oppenheimer from Perform to Outperform. The stock has gained 8.1 percent, setting an historic intraday high.

Meanwhile, Conway (CNW) is under pressure after being downgraded at Bank of America to Neutral from Buy. The broker also lowered its price target on the stock to $39 from $42. Shares are currently down by 7.8 percent after setting a two-month intraday low in earlier trading.