The Labor Department said new claims for unemployment benefits jumped unexpectedly to 576,000 last week. Economists, who are hoping for a return to economic growth this year, had predicted a decline.
However, U.S. stocks got some support from a rebound in overseas markets. In China, the Shanghai market bounced back from a sharp sell-off and the major European indexes were all up about 1 percent.
Treasury prices fell after several days of gains -- a sign that investors were feeling a bit more optimistic about the economy's prospects. Demand for government debt, considered a safe-haven asset, tends to rise when investors are nervous about the economy.
Investors also were poring over more earnings reports from retailers and other companies that directly serve the consumer. The news from Sears Holdings Corp. wasn't good; the retailer posted a bigger loss than expected in the second quarter as its sales fell and it closed stores.
Other companies, though, beat Wall Street's expectations. H.J. Heinz Co. said its fiscal first-quarter profit fell due to in part to the stronger dollar, but results topped analysts' estimates. And Hormel Foods Corp. said its third-quarter profit rose 49 percent, exceeding analyst projections.
Stocks have been trading erratically this week as investors, absorbing mixed economic signals, have alternated between optimism and pessimism about a recovery.
In early trading, the Dow Jones industrials rose 28.41, or 0.3 percent, to 9,307.57. The Standard & Poor's 500 index rose 5.25, or 0.5 percent, to 1,001.71, while the Nasdaq composite index gained 11.37, or 0.6 percent, to 1,980.61.
Yesterday’s Top Performing Small Cap stock:
HearAtLast Holdings, Inc. (Pink Sheets: HRAL) was a SmallCapVoice.com top performer closing up over 7% on trading volume of 83,040 shares.
HearAtLast Holdings, Inc., a leading provider of suitable affordable solutions to clients with hearing needs in the billion dollar hearing loss market, announced the addition of Pierre Lafontaine to its senior management team. In his new role as Managing Director and GM, Pierre will focus on expansion and restructuring of existing clinics with an emphasis on increased revenue generation through community outreach programs and clinic overhead reductions.
Today’s SmallCapVoice.com Hot Stock to Watch:
U.S. Geothermal, Inc. (AMEX: HTM)
U.S. Geothermal Inc. recently announced the closing of its private placement of 8,100,000 Subscription Receipts, at C$1.35 per Subscription Receipt, for gross proceeds of C$10,935,000. Gross proceeds will be used for drilling wells at the Neal Hot Springs geothermal project and for general working capital purposes.
U.S. Geothermal is a renewable energy development company that is operating geothermal power plants at Raft River, Idaho and at the San Emidio Desert in Nevada. The Neal Hot Springs project in eastern Oregon is being developed and is expected to be operational in 2011. The San Emidio project is currently under development to replace the existing old power plant with a new efficient plant. U.S. Geothermal holds, through ownership or lease, geothermal rights of lands that comprise the Raft River project in Idaho, San Emidio, Granite Ranch, and Gerlach in Nevada, and the Neal Hot Springs project in Oregon.
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