US stocks move up

US stocks rose modestly today for a second session in a row as unemployment claims fell unexpectedly and consumer spending grew slightly without triggering inflation.

The Dow Jones industrial average rose 55.71, or 0.51%, to 10,889.44.

Broader stock indicators also were higher. The Standard & Poor’s 500 index added 5.33, or 0.42%, to 1,268.12, and the Nasdaq composite index gained 14.83, or 0.66%, to close at 2,246.49.

The Labour Department reported that first-time jobless claims fell to a better-than-expected 318,000 last week, down by 13,000 from the previous week.

And while the Commerce Department reported a modest 0.3% rise in both personal income and consumer spending last month, the report also pointed to falling inflation.

Disappointing earnings from Micron Technology threatened to put pressure on technology stocks, which have been battered this month as investors moved to less risky, large-cap stocks.

But other tech stocks made gains, led by strong earnings from Research In Motion Ltd.

However, light volume – blamed in equal measure on the holidays and New York’s transport strike – meant little interest in bidding stocks substantially higher, analysts said.

“Right now, there’s just a lack of solid trading volume out there, so we’re struggling to move higher based on the good news we have,” said Peter Cardillo, chief strategist and senior vice president at SW Bach & Co. “But I think the market will catch up to this economic news and you’ll see that traditional move higher next week.”