US stocks up after mixed retail data

US stocks rose modestly in early trading Thursday as investors weighed mixed sales figures from major retailers and a drop in unemployment claims.

The Labor Department said initial claims for unemployment benefits fell by 53,000 to 357,000 last week, a better-than-expected reading. Still, the four-week average of claims, which helps the market look past week-to-week volatility, rose last week to 378,250, a two-and-a-half-year high.

Because of the shaky economy, retailers have been hurting. Clothing companies including Limited Brands Inc. and Pacific Sunwear of California Inc. reported sharp drops in March sales Thursday, a day after home furnishings retailer Bed Bath & Beyond Inc. warned its first-quarter profit would come in below the average analyst estimate.

But some retailers are weathering the economic weakness: Wal-Mart Stores Inc. reported a strong rise in March sales at stores open for at least a year, and boosted its forecast for April sales and first-quarter profit. Warehouse club operator Costco Wholesale Corp. also witnessed a sharp rise in March sales.

The Dow Jones industrial average rose 21.66, or 0.17 percent, to 12,548.92.

Broader stock indicators also ticked higher. The Standard & Poor's 500 index rose 1.03, or 0.08 percent, to 1,355.52, and the Nasdaq composite index rose 9.87, or 0.43 percent, to 2,331.99.

(Agencies)