US STOCKS-Market opens up on surprise drop in jobless claims

(Updates to open)

NEW YORK, May 22 (Reuters) - U.S. stocks rose on Thursday after a surprise drop in jobless claims and a takeover offer in the utilities sector buoyed investor optimism and offset worries of inflation spurred by crude oil above $135 a barrel.

The Dow Jones industrial average .DJI was up 10.43 points, or 0.08 percent, at 12,611.62. The Standard & Poor's 500 Index .SPX was up 1.66 points, or 0.12 percent, at 1,392.37. The Nasdaq Composite Index .IXIC was up 8.48 points, or 0.35 percent, at 2,456.75. (Reporting by Herbert Lash; Editing by Kenneth Barry)