Stocks climb on earnings, drop in jobless claims

NEW YORK (AP) — Stocks are climbing after a new batch of upbeat earnings and a modest drop in jobless claims renewed some optimism about the economy.

Southwest Airlines, ExxonMobil and Avon Products all topped forecasts. Strong earnings worldwide is giving European markets a lift as well.

A drop in initial jobless claims also boosted hopes for a recovery. The Labor Department says new jobless claims fell to 457,000. That’s better than the 459,000 forecast by economists.

Analysts widely agree that new hiring would spark a stronger recovery.

In early morning trading Thursday, the Dow Jones industrial average is up 50.26, or 0.5 percent, at 10,548.14. The Standard & Poor’s 500 index is up 5.18, or 0.5 percent, at 1,111.31, while the Nasdaq composite index is up 16.65, or 0.7 percent, at 2,281.21.