Stocks were higher on Wall Street in midday trade as the Commerce Department reported that the US trade deficit dropped 2.4 percent in August to $57.6 billion from its July level.

In addition, the Labor Department said that new unemployment claims fell to 308,000 last week, a drop of 12,000 from the previous week.

The Dow Jones Industrial Average was 0.53 percent higher at mid-session to 14,152.99 after rising to a new record of 14,181.36.

The Nasdaq Composite was 0.56 percent higher to 2,827.37, while the S&P 500 was up 0.59 percent to 1,751.71 after rising to a record 1,573.47.

In the retail sector, Wal-Mart (NYSE: WMT) added $1.61 to $47.20 after it issued an improved earnings estimate for the third quarter, saying it will record earnings of between 66 and 69 cents per share, from an earlier prediction of 62 to 65 cents per share.

With a gain in same-store sales, clothing retailer Aeropostale (NYSE: ARO) gained $2.11 to $22.02, while TJX Companies (NYSE: TJX), which owns T. J. Maxx and Marshalls stores, was $1.63 higher to $31.29 after it said same-store sales were up 2 percent in September.

Limited Brands (NYSE: LTD) added 76 cents to $22.34 even though it said it suffered a drop of 4 percent in same-store sales in September.

J.C. Penney (NYSE: JCP) dropped $3.22 to $64.78 on same-store sales that were much worse than had been anticipated, causing the clothing retailer to reduce its third quarter estimate.

Elsewhere, the oil sector saw gains after prices rose on a report that crude oil stockpiles dropped more than expected last week.

ConocoPhillips (NYSE: COP) was up 44 cents to $87.17, while ExxonMobil (NYSE: XOM) added 80 cents to $93.93.

The New York equities markets were up in midday trade.

The Dow Jones Industrial Average was 0.51 percent higher to 13,302.95, while the Nasdaq had added 0.55 percent to 2,555.8 and the S&P 500 was up 0.51 percent as well, to 1,469.92.

With crude oil prices higher, the oil sector saw gains.

ConocoPhillips (NYSE: COP) was 87 cents higher to $80.27, while ExxonMobil (NYSE: XOM) added $1.24 to $84.99, Chevron (NYSE: CVX) was up $1.41 to $86.89 and Valero Energy (NYSE: VLO) had gained $1.60 to $67.87.

New data on new home sales left the house building sector mixed. The Commerce Department reported that new home sales were up 2.8 percent in July after having dropped by 4 percent in June.

While the report seemed to ease fears that the housing slump could send the US economy into a recession, the fact remained that the sale of new homes was still 10.2 percent behind July sales last year.

Centex Corp (NYSE: CTX) added 16 cents to $32.02 after the report was issued, but Lennar (NYSE: LEN) dropped 3 cents to $29.96, Beazer (NYSE: BZH) was down 14 cents to $10.10 and Pulte Homes (NYSE: PHM) fell 23 cents to $17.36.

Clothing retailers were mixed on quarterly reports.

Gap (NYSE: GPS) added $1.03 to $18.43 after it said its earnings were up 19 percent and announced a share buyback worth $1.5 billion, but Aeropostale (NYSE: ARO) dropped 66 cents to $22.46 after its results didn’t meet analyst expectations.