Market Keeps Head Above Water

Stocks managed to stay in the green on Thursday, as better-than-expected reports on retail sales and jobless claims allowed Wall Street to rise above a fourth consecutive record day for oil prices.

Today's Market

The Dow Jones Industrial Average rose 52.43 points, or 0.41% to 12866.78, the Standard & Poor’s 500 index gained 5.11 points, or 0.37%, to 1397.68 and the Nasdaq Composite Index picked up 12.75 points, or 0.52%, to 2451.24. The consumer-friendly Fox 50 rose 2.26 points, or 0.23%, to 990.53.

The market rebounded a day after soaring oil prices and a big tumble in the financial sector brought Wall Street to its largest one-day loss in nearly a month. However, it was a modest rebound and one that lacked conviction as evidenced by relatively low trading volume. 

Aluminum giant Alcoa (AA) led the Dow, jumping 4.1% to a six-month high. Financial stocks took another hit Thursday as insurer AIG (AIG) declined 2% ahead of its quarterly results, which are due out after the closing bell. 

All eyes Thursday were focused on last month's same-store sales reports, which overall came in better than Wall Street had been looking for. While sales grew, they were largely fueled by discounts and other incentives. Still, retail sales give Wall Street clues as to how consumers are holding up amid rising energy and food prices, tumbling home values and scary economic headlines. 

Wal-Mart (WMT), the king of the retailers, reported a 3.2% increase in April same-store sales excluding fuel. Estimates from Thomson Reuters called for a smaller 2.1% estimate. Shares of Wal-Mart rose 0.6% on the report and the stock's price target was upped $5 to $60 by Credit Suisse (CS). 

Dow member McDonald's (MCD) revealed a 2% increase in U.S. same-store sales, compared to 6.3% growth in Europe. Also, Costco (COST) topped estimates with a 8% jump in April sales, compared to estimates from Thomson Reuters for a 6.1% increase. 

Other big winners in the retail world include BJ's Wholesale (BJ), Abercrombie & Fitch (ANF) and Aeropostale (ARO). 

On the other hand, other retailers missed estimates, including Target (TGT), Limited Brands (LTD) and Gap (GPS). 

Earlier, Wall Street reacted positively to a brief decline in crude oil prices. The reprieve didn't last very long as crude prices rebounded late in the day to close 16 cents higher at $123.69 a barrel -- its fourth consecutive record close. 

Thursday's lone major economic report gave stocks a boost. The government said jobless claims declined by a larger-than-expected 18,000 to 365,000 last week. Economists had expected a smaller 5,000 claim decline. 

While the numbers still remain at elevated levels, they aren't as bad as would be expected for recessionary conditions. The results come a week after the government reported a much better-than-expected report for the month of April.

Corporate Movers

Best Buy (BBY) invested $2.1 billion into a 50% stake in U.K.-based Carphone Warehouse, Europe's largest cell phone retailer. The joint venture includes Carphone Warehouse's 2,400 U.S. and European-based stores, as well as the company's web and direct businesses. Shares of Best Buy declined 3.2%.

Toyota (TM) fell 4% after the auto maker revealed a 28% decline in its fourth-quarter profit and predicted its first fiscal year profit decline in seven years. For its full-year that ended March 31, Toyota's profit increased 3.8%. 

General Motors (GM) said it is willing to pay up to $200 million to settle a nine-week long labor dispute at American Axle (AXL). The cash would go toward subsidizing lower wages for workers, including the 3,600 employees on strike at the company's five factories. GM's pickup truck and SUV production has been impacted by the strikes. 

Cablevision (CVC) disclosed a wider-than-expected first-quarter loss on higher losses in its Madison Square Garden business. The media company, which owns both the New York Rangers and New York Knicks, posted a loss of $31.6 million, or 11 cents a share, compared to estimates of a profit of 2 cents per share. However, revenue rose 10% to $1.72 billion, $20 million more than analysts called for. 

Crocs (CROX) soared 13.1% even though the footwear company swung to a first-quarter loss of $4.5 million. Shareholders breathed a sigh of relief as Crocs' adjusted-earnings of 9 cents per share met estimates and it reaffirmed its second-quarter and full-year outlook. Crocs said its revenue rose 40% to $198.5 million, topping estimates from Thomson Reuters of $197 million. 

Viacom (VIA), the media company that controls MTV and Nickelodeon, rose 0.8% after it was upgraded by BMO Capital to "outperform" from "market perform," according to Thomson Reuters.

Clearwire (CLWR) plunged 9.5% after the tech company was cut to "sell" from "hold" by Citigroup (C), according to Dow Jones. Earlier this week Sprint (S) and Clearwire announced plans to create a $4.55 billion high speed mobile Internet company based on WiMax technology.

Six Flags (SIX) shed 6.7% after it reported a narrower first-quarter loss but one that missed Wall Street's estimates. The amusement park operator lost $149.9 million, or $1.62 per share in the first quarter. Analysts polled by Thomson Reuters were looking for a loss of just $1.48 per share. Revenue in the latest period jumped 35% to $68.2 million, topping estimates of $63.1 million. 

Hershey (HSY) saw its stock price take a hit after Goldman Sachs (GS) added the chocolate company to its Americas sell list. The stock was lowered to "sell" from "neutral" by Goldman, and its price target was lowered to $32 from $35. 

Barr Pharmaceuticals (BRL) plunged 23.4% after the drug maker's first-quarter results missed estimates and its forecast disappointed the Street. Also, the company was downgraded by analysts at Goldman Sachs and Merrill Lynch (MER). Barr hit a 52-week low on its adjusted-earnings, which doubled to 57 cents per share, compared to expectations of 78 cents. The company's 2008 forecast of between $2.75 and $3.05 per share is well below estimates from Thomson Reuters for $3.27 per share. Barr blamed expected lower generic-drug revenue.

Hovnanian (HOV) took a 13.8% hit after the home builder announced plans to sell 14 million shares in an effort to raise $155.8 million. Shares of Hovnanian are up 55% year-to-date following a steep decline during 2007. 

Data Dump

U.S. wholesale inventories declined 0.1% in March, the Commerce Department said Thursday. The results were surprising as economists had expected a 0.5% increase.

World Markets

European major indexes closed mixed after the European Central Bank and Bank of England decided to hold interest rates there steady. The decision was widely expected. 

The Dow Jones Euro 50, the 50 largest companies of Europe, fell 15.92 points, or 0.41%, to 3855.86. London's FTSE 100 picked up 9.80 points, or 0.16%, to 6270.80.

France's CAC 40 Index lost 19.73 points, or 0.39%, to 5055.58 and Germany's DAX declined 4.35 points, or 0.06%, to 7071.90.

In Asia, Hong Kong's Hang Seng Index fell 160.42 points, or 0.63%, to 25449.79. Japan's Nikkei 225 lost 159.22 points, or 1.13%, to 13943.26.