Stocks Open Higher on Improving Unemployment Picture

1st time unemployment claims unexpectedly fell to the lowest level in 14 weeks although a record number of people remained out of work. Investors remained cautious about rising oil prices which hit a six-month high at nearly $58 a barrel. The Dow rose 50 points to 8562 while Nasdaq added 7 points to 1766.

On the upside

Banking stocks rallied as the results of the government's stress tests indicated capital needs, but all of the banks were deemed strong enough to survive by analysts. Shares of Citigroup (NYSE: C) and Bank of America (NYSE: BAC) surged higher in heaving trading.

Retailers posted declines in April sales that were smaller than expected. Shares of Gap (NYSE: GPS) and Wet Seal (Nasdaq: WTSLA) rose in early trading.

Shares of Vanda Pharmaceuticals (Nasdaq: VNDA) soared nearly tenfold after the FDA approved its schizophrenia drug.

On the downside

Macy's (NYSE: M) posted a larger than expected decline in same-store sales due to sluggish consumer spending.

Chemical company DuPont (NYSE: DD) announced plans to lay off 2000 workers in order cut expenses.

General Motors (NYSE: GM) lost $6 billion in the 1st quarter as revenues fell by nearly half as consumer worried about the auto maker not being able to honor its warranties if the company filed for bankruptcy.

In the broad market, advancing issues outpaced decliners by a margin of 4 to 1 on the NYSE and by nearly 3 to 1 on Nasdaq. The Russell 2000 which tracks small cap stocks added 3 points to 508.