US stocks up slightly

Stocks closed slightly higher in lacklustre pre-holiday trading in New York today, with a better-than-expected government report on oil inventories and good employment figures giving investors reasons to buy stocks.

Wall Street was generally encouraged as the latest Energy Department report on petroleum reserves showed flat demand and slight reserve increases in distillates such as heating oil.

However, oil futures rose in afternoon trading, with a barrel of light crude quoted at 49.44, up 50 cents, on the New York Mercantile Exchange.

A drop in weekly unemployment claims, which fell to their lowest level in three months, eased investor concerns about the strength of the economy.

According to the Labour Department, 323,000 first-time jobless claims were filed last week, down from 334,000 the previous week and less than the 335,000 analysts had expected.

However, with the dollar still struggling against other currencies and a mix of economic data, the markets were sluggish, especially with the Thanksgiving holiday approaching.

“I don’t know if there’s anything really driving the market today,” said Scott Wren, equity strategist at AG Edwards & Sons. “The dollar’s lower, but so is oil. Volume’s a little better, so there’s probably still some optimism there.”

The Dow Jones industrial average gained 27.71, or 0.26%, to 10,520.31.

Broader stock indicators were modestly higher. The Standard & Poor’s 500 index was up 4.82, or 0.41%, at 1,181.76, and the Nasdaq composite index gained 18.26, or 0.88%, to close at 2,102.54.

The latest economic news weighed on the market, minimising the day’s gains.

The dollar slid to another new low against the euro, breaking Tuesday’s record, with investors continuing to worry about the potential lack of foreign investment, as well as a more aggressive interest rate policy from the Federal Reserve, should the dollar’s trend continue.

“I think the dollar remains a major concern right now,” said Tim Trainor, equity trader with John Hancock Funds. ”And we know the Federal Reserve is going to react to it. We’ll probably see another interest rate hike in December because of it.”

In addition, orders for durable goods – big-ticket items expected to last at least three years – fell 0.4% in October after a 0.9% gain in September, according to the Commerce Department. Wall Street had expected a rise of 0.5%.

The latest reading of the University of Michigan’s consumer sentiment index also was disappointing. The revised index for November fell to 92.8, compared to the 95.5 reading in October and the 96 reading expected this month on Wall Street.

General Electric fell 17 cents to 35.64 after it announced it would purchase water treatment company Ionics for 1.1 billion in cash, or about 44 per share, plus the assumption of debt. Ionics surged 13.53, or 45.5%, to 43.28.

Biogen Idec and Elan announced that the Food and Drug Administration had approved their new drug for the treatment of multiple sclerosis. Biogen climbed 1.16 to 58.59, while Elan was down 3 cents at 27.27.

In earnings news, Hormel Foods gained 51 cents to 30.81 after it managed to beat Wall Street profit forecasts by a penny per share, with rising sales of packaged foods offsetting an increase in expenses.

The company’s profit forecasts for its first quarter were higher than expected.

Financial group H&R Block fell to a loss in its latest quarter due to sluggishness in its mortgage and investment service divisions. The company missed Wall Street expectations by 16 cents per share. H&R Block fell 1.05 to 47.40.

Advancing issues outnumbered decliners by about 5 to 2 on the New York Stock Exchange, where volume was light.

The Russell 2000 index of smaller companies was up 4.97, or 0.8%, at 629.50.