Stocks closed at a 2005 high on Thursday, as investors focused on positive news in the latest economic reports: a drop in unemployment claims, a narrower U.S. trade deficit in December and a rise in exports.
The Dow Jones Industrial Average rose 85.50, or 0.8 percent, to 10,749.61. The Standard & Poor’s 500 Index rose 5.02, or 0.4 percent, to 1,197.01. The Nasdaq Composite Index gained 0.55, or 0.03 percent, to 2,053.10.
The Labor Department said that the number of Americans filing new claims for unemployment benefits totaled 303,000 last week, a decline of 13,000 from the previous week. That put new filings at their lowest level since October 2000.
December’s trade deficit declined 4.9 percent to $56.4 billion, the Commerce Department said. That compared to a revised November shortfall of $59.3 billion, which was still the all-time monthly high, but down from a previously reported $60.3 billion.
Exports surged 12.3 percent, the best level since 1995, and imports were up even more, at 16.3 percent.
Among local companies, shares of United Online Inc. rose 16.8 percent on Thursday to $11.39 following the Woodland Hills-based Internet service provider’s release of fourth-quarter earnings late Wednesday.
After markets closed Wednesday, United Online reported net income of $80.2 million ($1.26 per diluted share), versus $24.4 million (35 cents) in the like year-ago period. Revenues rose 23 percent to $119.6 million.
Shares of Occidental Petroleum Corp. edged up 3.4 percent to settle at $63.37 after the L.A.-based oil producer increased its dividend by 13 percent. Quarterly payouts to stockholders will rise to 31 cents a share from 27.5 cents, effective with the dividend paid on April 15, the company said in a statement today.
And MRV Communications Inc. rose 2.9 percent to $3.52 after the Chatsworth-based network infrastructure equipment producer released fourth-quarter results on Thursday. The company reported net income of $918,000 (1 cent per diluted share), compared with a loss of $4.9 million (5 cents) for the like period a year earlier. Revenue rose to $81.9 million from $69.1 million in the year-ago quarter.
Activision Inc. shares fell 14.6 percent to close at $20.41 on heavy volume after the Santa Monica-based video game publisher revealed that some of its executives sold 7.1 million shares. After the market close Wednesday, a number of Activision directors, executives and employees sold the shares in a block transaction to Citigroup Global Markets Inc., the company said in a filing with the Securities and Exchange Commission.
And Farmer Bros. Co. shares fell 2.5 percent to $24.58 after the Torrance-based coffee roaster reported a loss of more than $4 million (30 cents per share) for its second fiscal quarter ended Dec. 31, compared with net income of $2.6 million (15 cents) in the year-earlier period. The company said the second quarter losses reflect increases in world green coffee prices.
