Stocks rallied on Thursday as encouraging government data gave investors more confidence about the economy despite the impact of the two recent hurricanes.
The Dow Jones Industrial Average rose 79.69, or 0.8 percent, to 10,552.78. The Standard & Poor’s 500 Index rose 10.79, or 0.9 percent, to 1,227.68. The Nasdaq Composite Index climbed 25.82, or 1.2 percent, to 2,141.22.
First-time claims for U.S. state unemployment insurance benefits fell 79,000 last week to 356,000, the Labor Department said, but the number of Americans thrown out of work by Hurricane Katrina climbed by another 60,000 last week, pushing the total number of unemployed workers seeking jobless benefits because of the storm to 279,000.
And the Commerce Department said that gross domestic product grew at a 3.3 percent annual rate in the April-to-June quarter, meaning the economy was growing solidly before hurricanes Katrina and Rita hit.
Among local movers, shares of OSI Systems Inc. gained 1.8 percent to $15.52 after the Hawthorne-based security and inspection systems manufacturer announced that its loss for the year ended June 30 narrowed to $2.4 million (15 cents per diluted share) from a previously reported $3.2 million (20 cents). The company said the difference arose from further analysis of, and adjustments to, its tax credits.
Arden Realty Inc. rose 4.5 percent to $40.40 after the L.A.-based real estate investment trust acquired the 115,227 square-foot Agoura Hills Business Park from Lowe Enterprises Investors, also of Los Angeles. The two-building office complex is situated on 6.2 acres.
On the down side, shares of Long Beach-based Molina Healthcare Inc. fell 8.5 percent to $24.78 after Amerigroup Corp., a Virginia Beach, Va.-based provider of services to people on government-sponsored programs, said its expected 48-cent-per-share third-quarter profit would instead be a loss of 6 cents to 8 cents due to higher-than-expected medical costs. Other providers including WellCare Health Plan Inc. and Centene Corp. also declined.
And Global Epoint Inc. sank 10.4 percent to $4.65 after the City of Industry-based manufacturer of security technologies said it received a letter from the Nasdaq Stock Market indicating that the company did not comply with a rule that requires shareholder approval for issuances of common stock or securities convertible into common stock to employees, officers or consultants. The company said it believes it will be able to resolve the Nasdaq’s comments in a timely fashion.
