Wall Street: Thurs mid-session

STOCKS rose slightly in mid-session trade, lifted by hopes that the jobs market is stabilising and a key forecasting gauge pointing to US economic growth.

First-time unemployment claims fell to 386,000 in the week ended August 16, down 17,000 from an upwardly revised 403,000 in the prior week, the Labor Department said. The figure was below analysts' forecasts of 395,000.

More importantly, the four-week moving average - seen as a better gauge of the jobs market because it smoothes volatility - declined slightly, pointing to a strengthening job market.

The Dow Jones industrial average rose 4.7 points, or 0.05%, to 9,402.21. The broader Standard & Poor's 500 Index was off 0.29 points, or 0.03%, at 1,000.01. The technology-laced Nasdaq Composite Index added 5.96 points, or 0.34%, to 1,766.50.

Barnes & Noble, the No. 1 US bookseller, rose after it reported higher second-quarter earnings above its prior forecast, helped by sales of the new Harry Potter book. It also raised its full-year sales and earnings forecasts. Barnes & Noble shares rose 6 cents, or 0.23%, to $26.31.

Ciena, a maker of telecommunications equipment, fell after it reported a quarterly loss amid sluggish spending by telephone companies and forecast disappointing sales in the current quarter. Its shares fell 8 cents, or 1.4%, to $5.74.

Pfizer shares topped the NYSE's most actively traded list, falling more than 2% after brokerage Smith Barney cut its rating on the drugmaker's stock to 'in-line' from 'outperform.' Pfizer shares fell 99 cents, or 3.4%, to $29.70.