Stocks ended the day mixed Thursday as investors digested a surprise jump in jobless claims, falling oil prices and a new drop in the dollar.
An unexpected increase in first-time jobless claims eased investors’ fears that inflation would rise as more workers enter the job market. The Labor Department reported a jump of 17,000 claims last week, to 327,000, the highest level in two months.
But inflation worries were bolstered as the dollar fell to a nine-week low against the euro. That stole momentum from crude oil prices, which fell after Wednesday’s sharp rise. A barrel of light crude settled at $53.54, down $1.23, on the New York Mercantile exchange.
The Dow Jones Industrial Average rose 45.89, or 0.4 percent, to finish the day at 10,851.51. The Standard & Poor’s 500 Index was up 2.24, or 0.2 percent, to close at 1,209.25. The Nasdaq Composite Index lost 1.57, or 0.1 percent, to end the trading day at 2,059.72.
Among local companies, shares of VCA Antech Inc. rose 6.2 percent to $19.75 after the L.A.-based animal health care services company’s stock rating was upgraded to “buy” from “neutral” by Banc of America. The 12-month price target was set at $24 per share.
Pasadena-based Avery Dennison Corp.’s stock edged up 4.4 percent to close at $61.83 after it was raised to “buy” from “neutral” by Banc of America. The 12-month price target is $67 per share.
On the down side, shares of Staar Surgical Co. dropped 22.1 percent to $4.62 after the Monrovia-based maker of implantable contact lenses said its auditor may warn that it could run out of cash. Last week the company announced it had retained Morgan Stanley to explore a “range of strategic and financial alternatives.” Late Wednesday, Staar said it expects its auditor to include a “going concern” warning in its fourth quarter financial statement to the Securities and Exchange Commission.
Shares of Worldwide Restaurant Concepts Inc. fell 1.4 percent to $4.90 after the Sherman Oaks-based restaurant operator and franchiser said Thursday it would postpone the release of its third-quarter financial statement to evaluate its lease accounting practices. The action is in response to comments by Donald T. Nicolaisen, chief accountant of the SEC, in his Feb. 7 letter to the American Institute of Certified Public Accountants expressing concern about how companies are accounting for discounted rents, the amortization of rent payments and lessee-funded operating lease incentives.
