Markets Extend Gains As Jobless Claims Drop

Jobless claims fell more than expected last week to boost the markets higher during the midday with the Dow surging 104 points to 12,730. Nasdaq leaped 40 points to 2874.

On the upside

OCZ Technology Group (Nasdaq: OCZ) reported first quarter earnings and revenue above analyst estimates and forecast full year results ahead of analyst expectations.

Rodman & Renshaw initiated coverage of Zalicus (Nasdaq: ZLCS) with a Market Outperform rating.

June same store sales for Kohl's (NYSE: KSS) surged 7.5% to surpass analyst expectations by a wide margin.

On the downside

Second quarter production fell for Forest Oil (NYSE: FST) due to flooding, plant downtime and divestiture.

Chief executive Douglas Miller of Exco Resources (NYSE: XCO) lowered his acquisition offer for the company to $4 billion in cash and an undisclosed amount in stock.

Natus Medical (Nasdaq: BABY) lowered its second quarter revenue outlook to fall below analyst expectations.

In the broad market, advancing issues outpaced decliners by a margin of more than 4 to 1 on both the NYSE and on Nasdaq. The Russell 2000 which tracks small cap stocks jumped 14 points to 859.