NEW YORK, March 11 (Xinhua) -- The U.S. stocks closed modestly higher after another sideways trading session on Thursday, as government data showed U.S. trade deficit narrowed but initial unemployment benefits applications dropped less than expected.
The U.S. Labor Department said before the opening bell that the number of U.S. workers filing for jobless benefits for the first time fell by 6,000 last week, which was slightly less than economists' expectation.
A separate report from the Commerce Department showed U.S. trade deficit fell in January because of a big drop in imported oil and cars. However, U.S. exports also dropped, spurring concerns that the economic recovery may slow down without robust overseas sales.
Meanwhile, the market was pressured after China reported a steep hike in inflation. Data showed China's inflation rate jumped 2.7 percent in February from 1.5 percent in January, raising concerns China may take further tightening measures to cool down the economy.
The Dow Jones industrial average rose 44.51, or 0.42 percent, to 10,611.84. The Standard & Poor's 500 index gained 4.63, or 0.40 percent, to 1,150.24 and the Nasdaq edged up 9.51, or 0.40 percent, to 2,368.46.
