The Labor Department's report that applications for unemployment benefits came in at 357,000 -- a decline of 18,000 from the previous week -- offered investors some relief about the health of the job market a day ahead of a key monthly reading.
While the weekly readings can show volatility, the latest drop left applications for benefits at their lowest level since mid-April. Still, the four-week average for those getting benefits rose to 3.086 million, the highest since March 2004.
Among retailers reporting solid May results, Wal-Mart Stores Inc. said sales at stores open at least a year rose as consumers sought bargains.
Subodh Kumar, global investment strategist at Subodh Kumar & Assoc. in Toronto, said the jobs figures and the Verizon Wireless deal offer some investors reassurance about the health of the economy.
"It looks like the U.S. is not in recession but, I would say, tepid growth," he said, adding that the Verizon bid for Alltel is "encouraging."
"Companies are willing to invest in their businesses," Kumar said.
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Ace of Spades HQ -- DJIA Soars Nearly 200 Points on Jobs Report, Stimulus Check Spending
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