NEW YORK — Stocks turned higher Thursday, as investors digested some better than expected economic news.
The Labor Department said first-time claims for unemployment benefits rose to 654,000 from the previous week's figure of 639,000, above analysts' expectations.
But the Commerce Department said retail sales fell less than expected in February.
Consumer spending is critical to restoring the economy to health as it makes up more than two-thirds of U.S. economic activity.
There was more merger-and-acquisition news in the pharmaceutical industry Thursday. Switzerland's Roche Holding agreed to buy Genentech for $46.8 billion.
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And Gilead Sciences agreed to buy CV Therapeutics for $1.4 billion.
Earlier this week, drugmakers Merck and Schering-Plough agreed to merge in a $41 billion deal. Consolidation in the drug industry has long been expected as companies struggle with withering sales and increased competition.
A report on foreclosures showed the housing market remains under pressure.
On Wednesday, the Dow Jones industrials managed to record their first two-day climb since early February. While the gains were modest compared with Tuesday's huge spike, when investors flooded the market on news that Citigroup was operating at a profit, the advance was a victory nonetheless after weeks of unrelenting selling.
Still, analysts caution that many economic problems remain and the rally was likely short-lived.
Bond prices were mixed early Thursday. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 2.87% from 2.91% late Wednesday. The yield on the three-month T-bill, considered one of the safest investments, was unchanged from late Wednesday at 0.22%.
The dollar was mixed against other major currencies. Gold prices also rose.
Light, sweet crude for April delivery rose 76 cents to $43.09 a barrel in electronic premarket trading on the New York Mercantile Exchange.
Overseas markets mostly fell on renewed concerns about the global economy and the spreading of the financial crisis. Japan's Nikkei stock average dropped 2.41%, while Hong Kong's Hang Seng index rose 0.59%.
In late morning trading, Britain's FTSE 100 was down 0.61%, Germany's DAX index was down 1.13%, and France's CAC-40 was down 1.37%.
