Stocks edge higher as retail sales reports arrive

| The Associated Press

5/8/2008 - 5/8/08

NEW YORK— Wall Street rose modestly Thursday as investors sifted through retailers' April sales figures, trying to get a sense of how consumers are faring in a climate of economic weakness and rising costs.

Many stores posted better-than-anticipated results for April. Wal-Mart Stores Inc., for one, said sales of groceries, flat-screen TVs and medications helped boost sales last month at stores open for at least a year by 3.2 percent.

But some apparel stores, whose merchandise falls into the category of discretionary items, appeared to still be struggling, with consumers budgeting more for gasoline and food.

The sales readings come a day after soaring oil prices knocked the Dow Jones industrial average down more than 200 points. On the New York Mercantile Exchange, crude dipped 37 cents to $123.16 a barrel, after reaching a record of nearly $124 late Wednesday in electronic trading.

Another factor weighing on consumers has been the job market — the United States has seen four straight months of net jobs losses. However, in a positive sign, the Labor Department said Thursday the number of newly laid off workers seeking unemployment benefits dropped by 18,000 last week to 365,000, a larger decline than expected.

The Dow Jones industrial average rose 28.09, or 0.22 percent, to 12,842.44.

Broader stock indicators also rebounded after Wednesday's plunge. The Standard & Poor's 500 index rose 2.01, or 0.14 percent, to 1,394.58, and the Nasdaq composite index rose 4.92, or 0.20 percent, to 2,443.41.

Bond prices rose. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.84 percent from 3.85 percent late Wednesday.

Retailers' figures come in following worrisome results from Toyota Motor Corp. Late Wednesday, the Japanese automaker said profit in the January-to-March period tumbled 28 percent due to the rising yen and weak North American sales. The maker of the Prius and Camry also predicted sales will drop for the fiscal year through March 2009 for the first time in several years, and that its profit will fall 27 percent.

Toyota's U.S.-traded shares fell $4.50, or 4.3 percent, to $100.26.

In other earnings news, American International Group is scheduled to release its first-quarter results after the close of trading. Analysts expect the insurer to post a loss. AIG shares fell 94 cents, or 2.2 percent, to $44.10 ahead of the report.

Gold prices rose, while the dollar rose against most other major global currencies.

The European Central Bank left its interest rates unchanged Thursday, and ECB President Jean-Claude Trichet pointed to clear upside risks to price stability, indicating that the central bank is unlikely to lower its rates in the near future.

In overseas trading, Japan's stock market fell 1.13 percent. By afternoon in Europe, Britain's FTSE index fell 0.21 percent, Germany's DAX index fell 0.61 percent, and France's CAC-40 fell 0.54 percent.

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