1:15PM New York – U.S. stocks gained on a decline in unemployment claims. UBS decided to sell its rights offering at a 31% discount to shareholders.

Weekly unemployment claims at the end of the week on May 17th decreased 9,000 to 365,000 from the previous week’s revised claims of 374,000. The four-week moving average increased 5,000 to 372,250.

The drop in claims sparked a rally in stocks. Stocks in energy, mining and metals, technology and retail sectors edged higher.

Ford Motor Company withdrew its profit guidance for the year and said that it hopes to achieve break-even before taxes and excluding special charges. Ford also plans to cut is production in the next two quarters as sale of pick-ups and utility vehicles decline in the face of rising crude oil prices.

Ford stock (F: chart) fell 7.5% or 68 cents to $7.13.

UBS, the battered Swiss banker increased its outstanding count by nearly one third and sold at a discount of 31% to shore up its balance sheet after a string of losses in the U.S. mortgage market.

UBS finalized its terms of rights offering to place 760 million shares at a price of Sfr 21 to raise Sfr 15.9 billion. The deal was authorized the board at the annual general meeting on April 23 and the issue is fully underwritten by the syndicate of banks led by JP Morgan, BNP Paribas and Goldman Sachs.

UBS stock (UBS: chart) in New York trading rose 58 cents to $29.92.

Earnings review

AnnTaylor Stores Corporation the women''s clothing retailer reported first quarter sales increased 2% to $591.7 million from $580.3 million a year ago. Net income in the quarter fell 21.6% to $25.9 million or 43 cents per diluted share compared to net income of $31.5 million or 46 cents per share, a year ago.

AnnTaylor Stores Corporation stock (ANN: chart) fell 22 cents to $26.55.

Barnes & Noble, Inc, a leading book retailer reported first quarter sales increased 1.1% to $1.2 billion from $1.1 billion a year ago. Net loss in the quarter was $2.2 million or 4 cents per diluted share compared to net loss of $1.6 million or 3 cents per share, a year ago.

Barnes & Noble, Inc stock (BKS: chart) rose 5 cents to $30.00.

Columbus Mckinnon Corporation, a manufacturer of material handling products said fourth quarter sales rose 7.5% to $168.6 million from $156.8 million a year ago. Net income in the quarter fell 24.3% to $8.4 million or 44 cents per diluted share compared to net income of $11.1 million or 58 cents per share, a year ago.

Fiscal year 2008 net sales increased 5.7% to $623.3 million compared with fiscal 2007 revenues of $589.8 million. International sales increased 35% to $217.9 million. Sales in the products segment that includes sale of hoist and cranes and other rigging products advanced 8.1% to $570.0 million for the year on strong demand in domestic and global markets. The service segment reported a decline in revenue of $9.4 million or 15.0%.

Backlog for the Solutions segment at March 31, 2008 was $11.8 million, a decrease from backlog of $17.0 million and $15.7 million at the end of the fiscal 2008 third and second quarters, respectively.

Columbus Mckinnon Corporation stock (CMCO: chart) added 56 cents to $28.02.

Dick’s Sporting Goods, Inc, a sporting goods retailer reported first quarter sales rise of 11% to $912.1 million from $823.5 million a year ago. Net income in the quarter decreased 4% to $20.8 million or 18 cents per diluted share compared to net income of $21.7 million or 19 cents per share, a year ago.

Dick’s Sporting Goods, Inc stock (DKS: chart) fell $5.35 to $21.20.

GameStop Corp, a retailer of used video games said first quarter sales increased 41.8% to $1.81 billion from $1.27 billion a year ago. Net income in the quarter increased 151.4% to $62.1 million or 37 cents per diluted share compared to net income of $24.7 million or 15 cents per share, a year ago.