Stocks Opened Higher after Jobs, GDP Data

U.S. stocks opened higher on Thursday, as investors appeared to shrug off a decline in economic growth in the first quarter and focus instead on declining jobless claims. The Dow Jones Industrial Average lately rose 28.88 points, or 0.17%, to 16,662.06. The S&P 500 was up 5.35 points, or 0.28%, to 1,915.13. The Nasdaq Composite gained 17.66 points, or 0.42%, to 4,242.73.

The U.S. economy contracted in the first quarter for the first time in three years, hampered by harsh weather that disrupted business operations and slowed construction, according to newly revised government figures. Gross domestic product, the sum of all goods and serves produced by the economy, shrank by annual pace of 1% in the first three months of 2014, the Commerce Department said Thursday.

The number of Americans filing new claims for unemployment benefits fell more than expected last week, pointing to a strengthening labor market. Initial claims for state unemployment benefits declined 27,000 to a seasonally adjusted 300,000 for the week ended May 24, the Labor Department said on Thursday.

Abercrombie & Fitch Co. said its fiscal first-quarter loss widened, with the teen-apparel retailer still struggling with lighter demand and weaker sales. Abercrombie reported a loss of $23.7 million, or 32 cents a share, compared with a year-earlier loss of $7.2 million, or nine cents a share.

Costco Wholesale Corp. said its fiscal third-quarter profit rose 3% from a year earlier. For the period ended May 11, Costco’s earnings rose to $473 million, or $1.07 a share, from a year-earlier profit of $459 million, or $1.04 a share. Total revenue rose about 7% to $25.79 billion.