U.S. stocks pare losses in final trading

The U.S. stocks pared losses and ended slight higher on Thursday despite the fact that weak economic outlook weighed on the market.

A rally in technology and consumer shares helped market rebound from early lows in the final stretch of trading on Thursday. As of market closing, the Dow rose less than 25 points, while both S&P and Nasdaq inched up a bit more than one point.

Major index fluctuated in a tight range in the negative area most of the session as disappointing economic data dampened investors' hope for recovery.

According to a monthly survey released by the Federal Reserve Bank of Philadelphia, its index of manufacturing activity dropped to 8 from 21.4 the month before. Although the reading still signaled an expansion, the pace of the gain was the lowest in 10 months, which made investors worry that the recovery strength was fading in one of the strongest parts of the economy.

Also hitting the market, the Labor Department said earlier in the morning that the number of people filing new claims for unemployment benefits increased sharply after three weeks of decline. Initial claims for jobless benefits rose by 12,000 to a seasonally adjusted 472,000, the highest level in a month, as states reported more claims in the construction, manufacturing and educational service sectors.

The good new on Thursday was from Europe. The Spanish government bond auction was successful, which demonstrated market' s confidence in the country's financial status and ability to deal with debt problems.

The Dow Jones industrial average rose 24.71, or 0.24 percent, to 10,434.17. The Standard & Poor's 500 index edged up 1.43, or 0. 13 percent, to 1,116.04 and the Nasdaq inched up 1.23, or 0.05 percent, to 2,307.16.

Source:Xinhua