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U.S. stocks mixed after jobless claims disappoint; Dow Jones down 0.12%

Published 05/22/2014, 09:40 AM
U.S. stocks open mixed, eyes on home sales data
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Investing.com - U.S. stocks opened mixed on Thursday, after the release of disappointing U.S. jobless claims data and as investors eyed a report on U.S. existing home sales to be published later in the day.

During early U.S. trade, the Dow 30 fell 0.12%, the S&P 500 inched down 0.03%, while the NASDAQ Composite eased up 0.04%.

The Labor Department reported that the number of people filing for initial jobless benefits last week increased by 28,000 to 326,000 from the previous week’s revised total of 298,000. Analysts had expected jobless claims to rise by 12,000 to 310,000.

The report came after Wednesday’s minutes of the Federal Reserve’s April meeting indicated that the bank continues to see a slow improvement in the economy, but reiterated that rates are likely to remain on hold at record lows for some time after its asset purchase program ends.

Market sentiment found some support earlier, after data showed that the preliminary reading of China’s HSBC manufacturing index rose to a five month high of 49.7 this month, up from a final reading 49.4 in April, but still remained below the 50 level separating contraction from expansion.

Facebook (NASDAQ:FB) gained 0.72%, Google (NASDAQ:GOOGL) advanced 0.60% and Apple (NASDAQ:AAPL) added 0.10% after saying, with other tech companies, that the bill U.S. lawmakers plan to vote on later Thursday to limit National Security Agency spying doesn’t go far enough.

Alcoa (NYSE:AA) added to gains, up 0.84%, after Chief Executive Officer Klaus Kleinfeld said the aluminum producer is experiencing the biggest transformation in the metals industry "in 125 years."

On the downside, Activision Blizzard (NASDAQ:ATVI) retreated 0.77% after French mass media and telecommunication company Vivendi (PARIS:VIV) said it plans to sell about half of its remaining stake in the video-game maker in an offering valued at $866 million. The sale is expected to be completed by May 28.

Elsewhere, Best Buy (NYSE:BBY) surged 5.52% after the electronics retailer reported first-quarter earnings that exceeded analysts' estimates but said revenue fell short of forecasts.

Sears Holdings (NASDAQ:SHLD) however reported a larger loss that expected for the first quarter, sending the retailer's shares down 2.98%.

Other stocks likely to be in focus included Gap (NYSE:GPS), GameStop (NYSE:GME) and TiVo (NASDAQ:TIVO), scheduled to report quarterly earnings later in the day.

Across the Atlantic, European stock markets were mixed to lower. The DJ Euro Stoxx 50 slipped 0.12%, France’s CAC 40 dipped 0.04%, Germany's DAX added 0.11%, while Britain's FTSE 100 eased 0.01%.

During the Asian trading session, Hong Kong's Hang Seng climbed 0.51%, while Japan’s Nikkei 225 surged 2.11%.

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