Wall Street pushes higher despite retail figures

Wall Street pushed higher today as investors looked past a weaker-than-expected report on jobless claims and tepid November retail figures. The Dow Jones industrials reached their highest level in 18 months.

Trading was uneven as investors were tentative a day after the Nasdaq composite index brushed the 2,000 level for the first time in nearly two years, and the Dow approached the 10,000 mark.

Indeed, although the three main gauges finished higher Thursday, advancing issues finished even with decliners on the New York Stock Exchange.

“We did make some psychologically significant highs yesterday. So now is the time to re-evaluate as the end of the year comes,” said Neil Massa, equity trader at John Hancock Funds.

“Investors might want to take some money off the table. But it’s certainly not a change in sentiment. I still think the trend is positive,” he said.

The Dow closed up 57.40, or 0.6%, at 9,930.82. It was the highest finish since May 28, 2002, when the blue chip average stood at 9,981.58.

On Wednesday, the Dow reached 9,942.01 before retreating somewhat and closing nearly 20 points higher. The last time the Dow closed above 10,000 was May 24, 2002.

The broader market also finished modestly higher. The Nasdaq gained 8.55, or 0.4%, to 1,968.80, after falling 20 points Wednesday. The last time the tech-heavy index closed above 2,000 was Jan. 15, 2002.

The Standard & Poor’s 500 index rose 4.99, or 0.5%, to 1,069.72, following a 2-point decline Wednesday.

Analysts said the choppy trading is a sign that investors were looking beyond today’s retail and claims figures to Friday’s expected release of November employment figures and next week’s meeting of the Federal Reserve.

“There’s a lot of drama building up here and so today is kind of a meandering day,” said Larry Wachtel, market analyst at Wachovia Securities.

While the retail results were mixed, investors have gained confidence and will focus instead on stores’ reports further into the holiday season, said Jack Caffrey, equity strategist for the J.P. Morgan private bank.

The government reported that more workers filed new claims for jobless benefits last week, but at a level that continues to suggest the pace of lay-offs has eased.

For the week ending November 29, applications for benefits rose by a seasonally adjusted 11,000 to 365,000. That is considerably lower than the high of 459,000 reached in April.

A number of major retailers reported sales figures for November, mixed results that clouded previously upbeat forecasts for the holiday shopping season.

Sears, Roebuck and Co. fell 2.27dollars to 52.59dollars after the company reported that sales at stores open at least a year, or same-store sales, declined 3.6%.

Gainers included Wal-Mart, the world’s largest retailer, which rose 33 cents to 53.02 dollars, after reporting a 3.9% sales gain at stores.

Volume was moderate. The Russell 2000 index, which tracks smaller company stocks, fell 1.04, or 0.2%, to 544.15.