Wall Street fluctuated Thursday as investors absorbed more bad news about bond insurers but also received economic data that suggested the job market remains largely undented, reported the Associated Press. The market rose in early trading, but wobbled after news that Fitch Ratings lowered its rating on bond insurer Security Capital Assurance Ltd. Bond insurers have been hurt in the fallout from the mortgage and credit crisis, and news of their problems has shaken the market. Those looking for good news could point to a Labor Department report that found the number of people seeking unemployment benefits last week fell for a fourth straight week. Applications for benefits dropped by 1,000 to 301,000 _ pushing claims down to the lowest level in four months. The jobs news comes in a week in which fears of a U.S. recession and any resulting global slowdown have rocked investors worldwide. On Thursday, stocks jumped sharply in Europe following earlier selloffs and Wednesday's rally in the U.S. The days gains came despite unnerving news of wrongdoing at a French bank. Societe Generale said it discovered a $7.14 billion fraud conducted by a single futures trader. Given the market's recent volatility, it remains less likely that even sizable gains or selloffs in stocks will hold as each session unfolds. A stunning turnaround Wednesday, while certainly a relief for many investors, illustrated the fractiousness that has settled into Wall Street in recent months. In midmorning trading, the Dow Jones industrial average was up 44.55, or 0.36 percent, at 12,314.72 after briefly rising more than 100 points but also falling into negative territory. Broader stock indicators also bobbled. The Standard & Poor's 500 index rose 3.54, or 0.26 percent, to 1,342.14, and the Nasdaq composite index rose 25.38, or 1.1 percent, to 2,341.79. Advancing issues outnumbered decliners by about 3 to 2 on the New York Stock Exchange, where volume came to 705.8 million shares. The Dow on Wednesday swung 631.86 points from its low point to its high _ its largest single-day reversal in more than five years. Bond prices fell as stocks fluctuated. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.61 percent from 3.55 percent late Wednesday. The dollar was mixed against other major currencies, while gold prices rose. Light, sweet crude oil rose 17 cents to $87.16 on the New York Mercantile Exchange. Word of the downgrade from Security Capital renewed some jitters about the bond market. However, investors looked to New York state regulators in hopes they can hatch a plan to shore up the bond insurance industry. New York Insurance Superintendent Eric Dinallo said in a statement Thursday it likely will take time to set up measures to help the industry. Fitch's move lowered the rating on Security Capital's financial strength to «A» from «AAA.» It's essentially necessary for bond insurers to have a «AAA» rating to draw new business. The move follows Security Captial's announcement Wednesday that it planned to raise capital to forestall any downgrade. Security Capital fell 93 cents, or 25 percent, to $2.86. Beyond bond insurers, investors had concerns about the health of corporate profits. Online auctioneer eBay Inc. said late Wednesday its fourth-quarter earnings and revenue showed gains. While the results were stronger than Wall Street had expected, investors were concerned by the company's first-quarter forecast, which fell short of expectations. The stock fell $1.69, or 5.8 percent, to $27.25. Ford Motor Co. reported it lost $2.7 billion in the fourth quarter as weakness in North America offset gains in markets elsewhere, though the loss was narrower than the $5.6 billion seen a year earlier. Excluding special items, Ford's results fell just short of Wall Street's expectations. Ford slipped 13 cents, or 2 percent, to $6.17. AT&T Inc. fell 95 cents, or 2.6 percent, to $35.74 after reporting its fourth-quarter profit rose on gains in its wireless business and growth in its broadband Internet sales. Results from the nation's largest telecommunications company were in line with forecasts, according to Thomson Financial. Investors found reason for optimism from strong results from the world's largest maker of mobile phones. Nokia Corp. said its fourth-quarter earnings jumped 44 percent to $2.6 billion and that it had managed to meet a long-term goal of hitting 40 percent market share for handset sales. Nokia rose $2.29, or 7.1 percent, to $34.72. Lockheed Martin Corp. rose $2.12, or 2.1 percent, to $103.81 after posting a 10 percent increase in its fourth-quarter profit. The earnings of $799 million, or $1.89 per share, topped the $1.69 per share that Wall Street had been expecting, according to Thomson Financial. Giving investors further room for optimism, the company boosted its 2008 profit forecast amid strength in its aeronautics business. The Russell 2000 index of smaller companies fell 1.03, or 0.15 percent, to 692.40.
