Jobless Claims Drop, Markets Open Higher

Initial applications for unemployment benefits dropped more than expected to lift the markets to a higher open with the Dow rising 23 points to 12,325. Nasdaq climbed 15 points to 2779.

On the upside

Boston Scientific (NYSE: BSX) reported higher second quarter earnings that topped analyst estimates prompting the medical device maker to lift its full year guidance.

The Food and Drug Administration confirmed that Dynavax (Nasdaq: DVAX) achieved clinical consistency in a Phase 3 trial of its hepatitis B vaccine HEPLISAV.

Second quarter earnings surged for LSI (NYSE: LSI) to beat analyst expectations and the company forecast third quarter revenue ahead of estimates prompting an upgrade.

On the downside

Sprint Nextel (NYSE: S) widened second quarter losses more than expected as the wireless communications company lost monthly contract subscribers.

Alcatel-Lucent (NYSE: ALU) reversed year ago losses but revenue fell short of analyst expectations.

Interpublic Group (NYSE: IPG) reported higher second quarter earnings but the results missed expectations.

In the broad market, advancing issues outpaced decliners by a margin of more than 9 to 7 on the NYSE and by more than 5 to 3 on Nasdaq. The Russell 2000 which tracks small cap stocks gained 5 points to 806.