Financials Lead ETF Gains on Flat Trading Session

Stocks and exchange-traded funds were mixed for the second session in a row after the Labor Department reported a rise in weekly jobless claims.

The Dow Jones Industrial Average finished up 33 points at 10607. The S&P 500 was up 5 at 1142, and the Nasdaq ended down a point at 2300.

Initial claims for jobless benefits rose 1,000 to 434,000 in the week ended Jan. 2, the Labor Department said Thursday. That was better than Wall Street expectations for an 8,000 gain. The four-week average of new claims, which aims to smooth volatility in the data, fell for the 18th week in a row.

The report came a day before the government is scheduled to release its December nonfarm payrolls report. The economy lost 11,000 nonfarm payrolls in November, an improvement over recent prior months. Economists surveyed by Dow Jones Newswires expect payrolls to have declined by another 10,000 last month, with the unemployment rate ticking back up to 10.1%, but some market participants say the report could show job creation.

In other markets Thursday morning, the dollar was higher, while Treasurys edged lower.

Stocks fell in China after the country’s central bank unexpectedly raised a key interbank market interest rate Thursday for the first time in nearly five months, signaling a change in its policy focus toward pre-empting inflation risks in the new year. The tightening move came less than a day after the People's Bank of China hinted at a shift toward managing inflation expectations and away from a single focus on supporting economic growth.

As of 4:06 p.m., crude oil futures traded on the Nymex were down 55 cents to $82.63.

For a detailed rundown on Thursday’s trading session see our market story. 

The iShares Dow Jones U.S. Home Construction Index fund (ITB) popped 5.8% after home builder Lennar (LEN) posted its first quarterly profit since the start of 2007. The SPDR KBW Bank fund (KBE) pipped 4.2% as financial stocks rallied ahead of broader indexes.

The iShares MSCI South Korea Index fund (EWY) shed 2.0% as the strengthening won slowed down exporters. The United States Natural Gas fund (UNG) also slipped 2.0% as energy prices ebbed slightly.

Earnings and Conference Calls
AZZ, Greenbrier Companies, MENTOR Network, Penford

Economic Data
8:30 a.m. Employment Situation
10:00 a.m. Wholesale Trade
3:00 p.m. Consumer Credit