NEW YORK, Feb. 7 (UPI) -- Stock prices on the New York Stock Exchange and the Nasdaq Stock Market were higher in moderate trading at midday Thursday, supported by strength in the retail sector and signs of job market stability.
The blue-chip Dow Jones industrial average, which lost 32.04 points Wednesday, was ahead 83.80 points to 9,737.10. The tech-heavy Nasdaq composite index, which fell 25.81 points in the previous session, was ahead 10.03 points to 1,822.74.
The broader New York Stock Exchange composite index was ahead 4.21 to 562.02 while the Standard & Poor's 500 index was ahead 10.03 to 1,093.54.
The American Stock Exchange composite index was down 3.05 points to 823.97 while the Russell 2000 Index was down 0.35 to 462.06.
Big Board volume declined to an estimated 595.30 million shares from 683.60 million shares changing hands during the same period Wednesday.
Analysts said blue chips were supported by strength in retail stocks. Retail issues were lifted after Wal-Mart said its sales at stores open at least a year grew 8.3 percent in January. Wal-Mart had forecast its sales growth would be at the upper end of a range of 4 percent to 6 percent.
The sector was also supported after Target Corp. said its fourth quarter profits will exceed Wall Street's estimates. The nation's third largest retailer also reported that its January same-store sales jumped 5.8 percent.
Analysts said Nasdaq was lifted after WorldCom Inc. said it has $10 billion in available liquidity, and bankruptcy or a credit default is "not a concern."
"The veracity of the rumors circulating about WorldCom over the last week has truly been unbelievable. To question WorldCom's viability is utter nonsense," said WorldCom Chief Executive Bernie Ebbers.
Ebbers also dismissed concerns that he may sell his stake in the company to repay loans. Rumors have swirled in recent days that he would have to sell shares to pay off loans, adding pressure on the WorldCom shares.
WorldCom earlier posted lower fourth-quarter profits at its main data business.
Analysts noted WorldCom's comments helped to lessen the pressure from Cisco.
After the markets closed Wednesday Cisco posted lower fiscal second quarter earnings due to the communications spending slowdown. The results were still almost twice what analysts had expected, but the company sounded a cautious note on the current quarter.
Cisco said it expects flat to low single-digit range increases in revenues in the third quarter compared with the second quarter.
Meanwhile, pessimism continues to rule in the market as investors worry that companies other than energy trader Enron may also have accounting problems.
Jeffrey Skilling, Enron's former president and chief executive officer, is expected to appear before Congress on Thursday to respond to questions from lawmakers about the company's accounting practices that appear to have caused what was once the seventh-largest U.S. company to implode, resulting in the biggest bankruptcy in U.S. history.
And on the economic front, a Labor Department report corroborated a view that the U.S. economy may be improving.
The government agency said first time jobless claims fell 15,000 to 376,000 for the week ended Feb. 2. Most experts on Wall Street were expecting no change in claims for the latest week.
Analysts said the decline suggested the labor market is stabilizing as the economy begins to signal it is emerging from recession.
Meanwhile, U.S. Treasury prices were lower. The 10-year bond fell 12/32 to 99 13/32. Its yield, which moves in the opposite direction of its price, rose to 4.95 percent from 4.90 percent late Wednesday.
Analysts said bonds moved lower on the unexpected decline in first time jobless claims as it provided hints that the labor market is stabilizing.
In Europe, stock prices ended higher in moderate trading in London, Frankfurt and Paris. The London International Stock Exchange's blue-chip FTSE-100 index gained 42.2 points, or 0.83 percent, to 5,116.0. The German DAX index rose 56.05 points, or 1.17 percent, to 4,860.46 and the French CAC-40 index rose 21.84 points, or 0.51 percent, to 4,295.65.
Analysts said British stocks were lifted by short covering but the market was disturbed by reports that December manufacturing production fell 0.5 percent and that industrial production fell 0.3 percent. Both declines were larger than expected.
Experts noted the market also drew support after the Bank of England kept its benchmark interest rate at 4 percent for a third consecutive month, a sign policymakers expect an acceleration in economic growth following seven rate reductions in 2001.
Analysts said German stocks were supported by a report that German factory orders rose by a stronger than expected 5.0 percent in December. However, the Finance Ministry said the figures might be revised downward.
Earlier in Asia, prices on the Tokyo Stock Exchange snapped their four day losing streak Thursday, supported by strong gains in the banking sector. Japan's blue-chip Nikkei Stock Average of 225 selective issues, which lost 54.75 points Wednesday, rose 162.42 points, or 1.70 percent, to 9,583.27.
Analysts said the rebound was to be expected after a 6 percent slide since Friday.
Experts said a series of upcoming major events also fueled hopes of new steps to arrest Japan's economic decline and lifted share prices.
The Bank of Japan will announce its decision on policy Friday, followed by a meeting of the Group of Seven leading industrial nations over the weekend. Later in February, U.S. President George W. Bush is slated to visit to Japan.
Local media reports on economic policy steps helped prompt hedge-fund operators as well as individuals trading via the Internet to cover short positions in major banks, dealers said.
National daily Mainichi Shimbun reported the Cabinet Office has started deliberations on a comprehensive plan to combat deflation that will focus on further monetary easing and stepped-up efforts to dispose of the nation's mountains of bad debt.
Elsewhere in Asia, prices on the Hong Kong Stock Exchange ended lower as the market tracked Wednesday's losses on Wall Street and as investors squared their positions ahead of the Chinese New Year. The blue-chip Hang Seng Index lost 182.71 points, or 1.72 percent, to 10,409.68, just above its worst level of the session of 10,393.83.
Analysts said market sentiment was weak, as some investors remain jittery after the Enron downfall, while others squared their positions ahead of the three-day Chinese Lunar New Year holiday, which begins next Tuesday.
Meanwhile, stocks ended lower on the South Korean Stock Exchange as foreign investors remained jittery over the prospects for a stock market recovery. The Korea Composite Stock Price Index, or Kospi, fell 13.84 points, or 1.90 percent, to 727.71.
Seoul's stock market will be closed from Monday to Wednesday for Lunar New Year holidays.
Elsewhere around the Pacific region, prices ended lower on the Australian Stock Exchange, pressured by weakness in media and mining issues. The blue-chip All Ordinaries Index, which dropped 24.70 points Wednesday, lost another 9.80 points, or 0.29 percent, to 3,361.80.
Meanwhile, markets in Taiwan were closed for the Lunar New Year holiday and will reopen on Feb. 18.
