US stocks head for first up day in over a week

NEW YORK

Stocks headed higher Wednesday, putting them on track to break a weeklong losing streak.

Investors were encouraged by a government report showing that U.S. exports hit a record high in April, narrowing the U.S. trade deficit. U.S. companies sold more computers, heavy machinery and telecommunications equipment overseas while imports declined, largely because fewer autos were imported from Japan after factories were damaged by that country's earthquake and tsunami.

Spiking oil prices sent energy stocks higher. Energy companies in the Standard & Poor's 500 index rose 1.2 percent, the most of any industry group in the index. Crude rose 57 cents to $101.31.

Stock indexes have fallen for six straight days. That's the longest losing streak for The Dow Jones industrial average in over a year. The Standard & Poor's 500 index has fallen for the longest period since February 2009.

A separate report on claims for unemployment benefits was in line with expectations that new applications would stay roughly the same. The Labor Department reported that new claims edged up 1,000 to 427,000. Economists had expected a slight drop. The high level of claims still suggests that the job market is slow.

The Dow Jones industrial average rose 67 points, or 0.6 percent, to 12,116. The S&P 500 index rose 8, or 0.7 percent, to 1,287. The Nasdaq composite rose 6, or 0.2 percent, to 2,681.

Stocks have been slipping since mid-April as investors become concerned that the U.S. economy has hit a soft patch. Rising oil prices, Japan's tsunami and nuclear disaster and the risk that Greece might default on its debt have led investors to lower their forecasts for U.S. growth this year.

More information about the economy will trickle in throughout the day. White House representatives will report at midday on how many homeowners were able to modify their mortgages to make lower monthly payments and avoid foreclosure. The Obama administration aimed to provide permanent loan modifications to 3 to 4 million homeowners who were facing foreclosure. However the administration has only lowered the mortgage payments of 670,000 so far.