Stocks Wobbled after Claims Data

U.S. stocks wobbled in the early trading on Thursday, after initial jobless claims data pointed to a possible strengthening in the labor market and ahead of testimony by Federal Reserve Chair Janet Yellen.  The Dow Jones Industrial Average lately rose 39.88 points, or 0.24%, to 16,558.42. The S&P 500 was up 4.37 points, or 0.23%, to 1,882.58. The Nasdaq Composite gained 7.56 points, or 0.19%, to 4,075.23.

The number of Americans filing new claims for unemployment benefits fell more than expected last week, indicating the labor market was strengthening despite a run-up in applications in prior weeks. Initial claims for state unemployment benefits declined 26,000 to a seasonally adjusted 319,000 for the week ended May 3, the Labor Department said on Thursday.

European Central Bank President Mario Draghi Thursday said its governing council may take measures to push the annual rate of inflation higher when it meets in June.

Britain’s Barclays reined in its ambitions to be a Wall Street powerhouse on Thursday and signalled a return to its retail roots with a plan to hive off much of its investment bank and axe one in four jobs at the division.

Leading economists are voicing growing concern about the flagging U.S. housing recovery, raising doubts about a key pillar of economic growth.

Mortgage finance giants Fannie Mae and Freddie Mac will pay the federal government $10.2 billion more in dividends for their 2008 rescue after both firms reported first-quarter profits Thursday.

JA Solar Holdings Co. (JASO) reported stronger-than-expected first-quarter revenue. The Shanghai-based company said revenue totaled $366 million in the quarter, up 36% from a year ago.