NEW YORK – Better economic reports are lifting stocks a day after the market had its biggest drop in seven months.

 

The number of people applying for unemployment benefits fell more than economists expected last week. Inflation in consumer prices was tame in February.

 

Production at U.S. factories, mines and utilities dipped last month but was actually higher in previous months than first estimated, according to the Federal Reserve.

 

Financial markets were gripped by fear over Japan’s nuclear crisis on Wednesday. The Dow Jones industrial average had its biggest loss since August, nearly erasing its gains for the year.

 

The Dow rose 128, or 1.1 percent, to 11,742 in midday trading Thursday.

 

The Standard & Poor’s 500 rose 16, or 1.3 percent, at 1,273. The Nasdaq rose 35, or 1.3 percent, at 2,652.

 

Source: Associated Press