NEW YORK (CNN/Money) - A worse-than-expected jobless claims report and President Bush's speech before the United Nations to rally support against Iraqi president Saddam Hussein pulled stocks into the red Thursday.

The Labor Department said the number of Americans filing new claims for unemployment benefits rose to 426,000 in the week ended Sept. 7 from an upwardly revised 407,000 the prior week. Economists, on average, expected 400,000 new claims, according to Briefing.com.

For those looking to enter the markets Thursday, two stock market analysts appeared on CNNfn to suggest positions in shipping, retail and software stocks.

Frank Gannon, portfolio manager with SunAmerica Asset Management, believes United Parcel Service is worth a look, especially with the Christmas season around the corner.

"It has a triple-A-rated balance sheet and has great management," he said. "The stock continues to grow with double-digit earnings growth. They recently settled their [contract] talks with all their drivers earlier this summer. I think this is a stock that's going to continue to do well as the economy does well and picks up, especially in the fourth quarter as we get close to he Christmas season."

Frank Gannon's picks       Coach (COH) Home Depot (HD) United Parcel Service (UPS)

Luxury retailer Coach is Gannon's second selection. "They recently came out and said that they had very good same-store sales growth for the month of August, and it's a stock that's going to grow in the double digits as well," he added. "They've got great products. They've got a great management team, and their margins are going to continue to expand."

Gannon's final pick is Home Depot. "We're betting with the consumer here. I think you have to. The consumer has been the one bright spot from an economic standpoint over the past year, and I think with the refinancing boom that is taking place right now, you are going to continue to see the consumer spend," he said. "Perhaps not the rate we have seen, but you will see them. We recently added to our Home Depot position."

Shares of UPS (UPS: down $1.00 to $62.02, Research, Estimates) are in a 52-week range of $67.10 to $46.15.

Coach (COH: down $1.37 to $27.88, Research, Estimates) shares have been between $30.11 and $10.00 in the past year.

Shares of Home Depot (HD: down $0.30 to $32.93, Research, Estimates) are in a 52-week range of $52.60 to $26.10.

Paul Meeks, an independent technology specialist, looks for companies with undervalued stocks and developing technology.

"Moldflow is a software company that is trading at about four-and-a-half times earnings," he said. "I don't think that this company will earn money, but it will be cash-flow neutral for the rest of the cycle. And they have customers that really like to buy their products and they have good technology and good market share."

Paul Meeks' picks       Advanced Micro Devices (AMD) Moldflow (MFLO)

Meeks' other selection is Advanced Micro Devices. "I would probably buy AMD at this point over Intel because for the first time in AMD's corporate history, I actually think they have a technology lead over Intel."

Shares of Moldflow (MFLO: down $0.29 to $4.45, Research, Estimates) are in a 52-week range of $19.65 to $4.20.

Advanced Micro Devices (AMD: down $0.36 to $7.88, Research, Estimates) shares have been between $20.60 and $7.01 in the past year.