Stocks turn higher in midday trading

NEW YORK (AP) — Stocks reversed earlier losses and edged higher in midday trading Thursday, as investors weighed an unexpected jump in jobless claims against a strong manufacturing report.

The Labor Department said Thursday that the number of people filing for unemployment benefits rose 25,000 from the previous week. That was more than economists expected.

The Federal Reserve Bank of Philadelphia reported that its index of manufacturing in the mid-Atlantic region jumped from 19.3 in January to 35.9 in February. Any number above zero signals growth.

The government also reported that consumer prices in January were slightly higher than forecast, largely a result of rising food and gas prices. The Consumer Price Index rose 0.4 percent. The core index, which excludes food and energy costs, looked relatively tame, rising 0.2 percent.

Forecasters had expected to see the price index rise 0.3 percent last month, and the core index inch up 0.1 percent.

The Dow Jones industrial average rose 7 points, or 0.1 percent, to 12,295. The Standard & Poor's 500 index rose 2, or 0.2 percent, to 1,338. The Nasdaq composite rose 5, or 0.1 percent, to 2,829.

"The initial jobless claims data look disappointing," said Anthony Chan, chief economist at JPMorgan Private Wealth Management. "But from a longer-term perspective we're seeing a pickup in employment."

Chan said the most recent data appears bad compared to the previous week, when claims for unemployment benefits fell to the lowest level since July 2008. But that was partly a result of winter weather in many parts of the country that closed government offices and kept people from applying for benefits.

Chan said the trend is headed in the right direction. The four-week average for applications is slightly above the two-year low of 411,250 in the week ending Jan. 1.

Barrick Gold Corp., Duke Energy Corp. and J.M. Smucker Co. all rose after reporting stronger earnings results.

Barrick's quarterly profit jumped four-fold, helped by higher production and lower costs. The world's largest gold miner's stock gained 1.3 percent in early trading.

Duke Energy's net income grew 23 percent, boosted by gains from selling assets and rising customer demand. Duke gained 2 percent.

Profit fell at J.M. Smucker, maker of Jif peanut butter and Folgers coffee, but still beat analysts' expectations. The company also raised its earnings outlook for the year. J.M. Smucker rose 4 percent in early trading.