Major Averages Clinging To Slim Gains In Afternoon Trading

Stocks edged higher early in the session on Thursday and continue to see modest strength in afternoon trading. The Nasdaq and the S&P 500 are moving higher for the fifth consecutive session.

Currently, the major averages are holding on to slim gains. The Dow is up 67.02 points or 0.2 percent at 37,723.54, the Nasdaq is up 14.86 points or 0.1 percent at 15,114.03 and the S&P 500 is up 6.22 points or 0.1 percent at 4,787.80.

The modest strength on Wall Street comes after the Labor Department released a report showing first-time claims for U.S. unemployment benefits rose by more than expected in the week ended December 23rd.

The report said initial jobless claims climbed to 218,000, an increase of 12,000 from the previous week’s revised level of 206,000.

Economists had expected jobless claims to inch up to 210,000 from the 205,000 originally reported for the previous week.

The data may have added to optimism about the likelihood of near-term interest rate cuts by the Federal Reserve, with CME Group’s FedWatch Tool currently indicating a 72.8 percent chance the Fed will lower rates by a quarter point in March.

The National Association of Realtors also released a report showing pending home sales were unexpectedly unchanged in the month of November.

NAR said its pending home sales index stayed at 71.6 in November after tumbling by a revised 1.2 percent in October.

Economists had expected pending home sales to jump by 1.0 percent compared to the 1.5 percent slump originally reported for the previous month.

Trading activity may pick back up next week, as the Labor Department is scheduled to release its more closely watched monthly jobs report next Friday.

Sector News

Despite the uptick by the broader markets, gold stocks have moved sharply lower on the day, dragging the NYSE Arca Gold Bugs Index down by 2.0 percent.

The index is pulling back off a five-month closing high as the price of gold for February delivery has fallen $9.60 to $2,083.50 an ounce.

A steep drop by the price…