US stocks edged higher overnight as investors bought technology, commodity and bank shares. Trading had been choppy for most of the day as investors remained cautious ahead of more corporate earnings results due out in the coming weeks.
The Dow Jones industrial average gained 5 points to 8,183. The S&P500 Index rose 3 points to 883 and the NASDAQ added 5 points to 1,753. In economic news, The Labor Department said the number of Americans filing new claims for unemployment fell to 565,000 last week from 617,000 the week before. That was short of the 603,000 new claims that economists had been expecting. But continuing claims, which accounts for those people receiving benefits for a week or more, rose to 6,883,000, a record high.And the Commerce Department reported May wholesale inventories fell 0.8% after falling 1.3% last month. It was the ninth straight month of declining inventories.
In company news:Alcoa (NYSE:AA) shares fell 2.43% to $9.23 after it kicked off the earnings season with a smaller-than-expected loss. The aluminum producer said it lost 26 cents per share versus a profit of 66 cents a year ago as the global recession hurt pricing and demand.
Goldman Sachs (NYSE:GS) shares rose 3.36% to $143.21 after Banc of America Securities-Merrill Lynch upgraded its rating to "buy" and raised its earnings estimates on the basis that it believes the firm's earnings power and book value were increasing rapidly again.
Abercrombie & Fitch (NYSE: ANF) shares lost 4.17% to $23 after the retailer posted same-store sales that were 32% weaker than a year ago.
Merck (NYSE: MRK) shares lost 3.67% to $27.01. Merck and Portola Pharmaceuticals announced that they will develop and market an oral blood thinner used to prevent stroke in heart patients. Merck will pay Portola $50 million up front and potentially an additional $420 million further down the line.
Checking the NASDAQ Top 100.The best performer was Wynn Resorts which added 6.75% to $31.93. Foster Wheeler and KLA Tencor also posted good gains. On the downside, First Solar fell by 2.32% to $146.11. Amgen and Urban Outfitters also closed weaker.
