Dow has best close in more than a month

A late surge of buying lifted Wall Street to its second-straight winning session Thursday, despite more disappointing economic news and profit-taking after the market’s huge rally. The Dow Jones industrials had their best close in more than five weeks.

The gains came gradually, however, and only solidified in the final hour of trading.

The Dow closed up 74.83, or 0.9 percent, at 8,818.14, for a two-day advance of 335.75. It was the average’s highest close since July 9, when the Dow stood at 9,096.09.

Broader stock indicators also rose. The Nasdaq composite index gained 10.71, or 0.8 percent, to 1,345.01.

Economy

Production slows for manufacturers

Manufacturers shifted into a lower gear in July and more Americans filed new applications for jobless benefits last week as companies and workers felt the strain of the struggling economic recovery.

Factory production nudged up by only 0.1 percent in July, compared with the solid 0.6 percent increase from the previous month, the Federal Reserve reported Thursday.

For the entire industrial sector which includes factories, mines and utilities output rose by 0.2 percent in July, compared with June’s 0.7 percent increase.

The Labor Department reported that new claims for unemployment insurance rose last week by a seasonally adjusted 6,000 to 388,000, a level associated with a sluggish job market.

Bankruptcy

Vanguard closing could cost KCI millions

If bankrupt Vanguard Airlines cannot find the financing it needs to get back into the air, its employees won’t be the only ones hurt.

The loss of Kansas City’s hometown airline, which shut down and filed for Chapter 11 bankruptcy protection on July 30, could cost Kansas City International Airport $2 million to $4 million per year, the city’s aviation director said.

If the airline is permanently grounded, Russ Widmar said revenue shortfalls are projected for passenger facility charges, landing fees, terminal rents, parking, and restaurants and retail shops.

Widmar said a team of airport staff members, architects and project managers was reviewing the effect Vanguard will have on the airport’s terminal renovation project.

That group will report soon to senior management.

Wall Street

Earnings of area interest

Several retailers with stores in Lawrence reported quarterly profits Thursday. Target Corp. reported earnings of 38 cents per share, up from 30 cents a year ago. Kohl’s Corp. posted profits of 36 cents per share compared to 25 cents a year ago.

Gap Inc. reported earnings of 6 cents per share compared to 10 cents during the same period a year ago. American Eagle Outfitters Inc. posted earnings of 14 cents per share compared to 21 cents a year ago. The Buckle Inc. posted profits of 19 cents per share, unchanged from a year ago.