Stocks Opened Higher; Wal-Mart Cut Outlook

U.S. stocks opened slightly higher on Thursday, but gains were capped by a larger-than-expected jump in jobless claims and a cut in outlook by Wal-Mart, the world’s largest retail chain. The Dow Jones Industrial Average lately gained 23.18 points, or 0.14%, to 16,674.98. The S&P 500 was up 3.60 points, or 0.18%, at 1,950.32. The Nasdaq Composite rose 7.52 points, or 0.17%, to 4,441.64.

The number of Americans filing new claims for unemployment benefits rose more than expected last week, but will probably do little to change views that the labor market was strengthening. Initial claims for state unemployment benefits increased 21,000 to a seasonally adjusted 311,000 for the week ended Aug. 9, the Labor Department said on Thursday.

Wal-Mart Stores Inc cut its full-year profit forecast, citing higher employee healthcare costs and increased investment in its online business. The company cut its forecast for earnings from continuing operations for the year ending Jan. 31 to $4.90-$5.15 per share from $5.10-$5.45.

The prices paid for goods imported into the U.S. declined by 0.2% in July, the first drop in three months, led lower by fuel prices, the U.S. Labor Department reported Thursday.

Cisco Systems on Wednesday said it is laying off thousands of employees as it struggles with sluggish sales and a range of fierce competitors.The company announced 6,000 job cuts on a conference call following its quarterly earnings report.