NEW YORK – Stocks swung between small gains and losses Thursday as the price of oil jumped above $106 a barrel.
Slightly disappointing reports on new unemployment claims and factory orders weighed on stocks Thursday. The Labor Department said fewer people applied for unemployment benefits last week, signaling that companies may be slowing layoffs. The number of new claims fell by 6,000 to 388,000. Analysts expected a larger drop.
The news comes a day before the Labor Department’s monthly employment report. The unemployment rate is expected to remain unchanged at 8.9 percent.
Oil surged above $106 a barrel after troops loyal to Libyan leader Moammar Gadhafi retook control of the key oil port of Ras Lanouf from rebel forces. The power shift threatens the quick restart of oil exports promised by a rebel victory. Rising oil prices limit spending by consumers forced to pay more for gasoline, and could cut into economic growth.
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