Stocks Vault Higher

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This is a fifth consecutive monthly decline, and the index has been negative in seven of the last nine months.

U.S. jobless claims climbed 22,000 to 378,000 the week ended March 15, following a revised 356,000 (353,000 before). Continuing claims jumped 32,000 to 2,865,000 in the week ended March 8, pushing the insured unemployment rate to 2.2% from 2.1% the week before. The claims data were stronger than expectations of 355,000, though the upside won't likely surprise markets, given the disappointing employment figures that have been released to date, according to S&P Economics.

Forecasters continue to expect weakness in the U.S. and other world economies. According to a Wall Street Journal report, the Organization for Economic

Cooperation and Development downgraded its economic forecasts for the U.S., euro-zone and Japan for the first half of 2008 and warned Europe and Japan that they don't

have room to ease fiscal or monetary policy. The OECD revised its first-quarter U.S. GDP forecast to 0.1% and predicted GDP would be flat in the second.

"The U.S. economy is now essentially moving sideways, if not contracting outright," the OECD said. "It may be premature to declare a recession, but with the pace of activity so far below potential, economic slack is widening rapidly."

According to a Wall Street Journal report, Rep. Barney Frank (D-Mass.), chairman of the House Financial Services Committee, said the Federal Reserve or another new regulatory entity should be authorized to oversee and supervise all credit-creating institutions to assess their risk in exchange for giving them access to the Fed as lender of last resort. Frank said the Fed should monitor "the health of the entire financial sector and act when necessary to limit risky practices."

May WTI crude-oil futures fell 84 cents to $101.70 per barrel in a carryover of Wednesday's plunge.

Comex April gold futures fell $25.50 to $919.50 per ounce as the dollar index rose on the perception the Fed will reduce the size of its rate cuts in coming months.

Among stocks in the news Thursday, Nike (NKE) posted third quarter earnings per share of 92 cents, vs. 68 cents one year earlier, on a 16% revenue rise. The company says a weak U.S. dollar aided sales. Nike sees low double digit revenue growth in its fiscal fourth quarter.

FedEx (FDX) reported third quarter earnings per share of $1.26 (including an 8-cent benefit from a reduction in its effective tax rate), vs. $1.35 one year earlier, as higher fuel prices and a weak U.S. economy offset a 10% revenue rise. The company sees fourth-quarter EPS of $1.60-$1.80 compared to $1.96 a year ago.

Abbott Laboratories (ABT) and Takeda Pharmaceutical will end their 50/50 joint venture in Tap Pharmaceutical, with Abbott retaining rights to the prostate cancer drug Lupron and receiving an undisclosed upfront cash payment estimated at $1.5 billion.

Borders Group (BGP) will investigate a wide range of alternatives including the sale of the company or certain units for the purpose of maximizing shareholder value. The bookseller posted fourth-quarter EPS from continuing operations of $1.44, vs. $1.45 one year earlier, despite a 2.8% rise in consolidated sales (excluding the impact of an extra week during fiscal 2007).

Borders’ archrival Barnes & Noble (BKS) posted fourth-quarter EPS of $1.79, vs. $1.83 one year earlier, on a 1.7% revenue rise. The company raised its quarterly dividend to 25 cents from 15 cents. The company expects first-quarter EPS to be in the range of 5 to 10 cents, with same-store sales slightly negative.

European indexes finished in the red Thursday, though up from earlier lows. In London, the FTSE 100 index fell 0.67% to 5,508.60. In Paris, the CAC 40 index declined 0.53% to 4,532.02. Germany’s DAX index shed 0.55% to 6,326.42.

Asian markets finished mixed. In Hong Kong, the Hang Seng index slumped 3.47% to 21,108.22. Shanghai’s benchmark index rose 1.13%. In Japan, financial markets were closed for a holiday.

Treasury market

Treasuries ended widely mixed amid position squaring ahead of the long weekend and the quarterly expiration of some options and futures in the equity market. The 10-year note eased 02/32 to 101-13/32 for a yield of 3.33%. The 30-year bond jumped 19/32 to 103-19/32 for a yield of 4.16%. The 10-year yield finished near its lowest level of the year, affirming the downtrend from last June that reflects fears of economic recession.