Stocks Opened Higher after Economic Data

U.S. stocks rose at the open on Thursday, after weekly jobless claims and a headline figure for inflation both unexpectedly declined. The Dow Jones Industrial Average lately gained 109.17 points, or 0.60%, to 8,169.66. The S&P 500 added 10.33 points, or 0.49%, to 2,108.81. The Nasdaq Composite was up 22.02 points, or 0.44%, to 5,003.72.

Fewer Americans than forecast filed applications for unemployment benefits last week, pushing the average over the past month to the lowest level in 15 years and underscoring labor-market strength. Jobless claims decreased by 1,000 to 264,000 in the seven days ended May 9, a Labor Department report showed Thursday.

Wholesale prices in the U.S. unexpectedly declined in April from the prior month, indicating inflation is well-contained as Federal Reserve officials weigh when to raise the benchmark interest rate. The 0.4 percent drop in the producer-price index followed a 0.2 percent gain in March that was the first increase in five months, a Labor Department report showed today in Washington.

Verizon has agreed to buy AOL in an all-cash deal, valuing the company at $4.4 billion or $50 per share. The acquisition will enable Verizon to integrate AOL’s content programming and targeted advertising technology with its massive wireless network.

Shake Shack reported first-quarter 2015 results that dazzled on almost every level Wednesday. Sales grew 56% to $38 million, adjusted profits were up 94% to $7 million and nearly every industry-specific metric you could ask from a restaurant was moving in the right direction.

Kohl’s Corp., the third-largest U.S. retailer, reported quarterly sales that trailed analysts’ estimates. Sales in the quarter ended May 2 rose 1.3 percent to $4.12 billion. Same-store sales advanced 1.4 percent, compared with a forecast for a gain of 2.6 percent.