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Economic reports
lift stocks to gains
NEW YORK >> A trio of upbeat economic reports ranging from jobless claims to regional manufacturing cheered Wall Street yesterday, prompting investors to pick up shares on strengthening expectations of a solid recovery. The Nasdaq composite index reached another 16-month high.
"Jobless claims were benign, so people were relieved by that," said Henry Herrmann, chief investment officer at Waddell & Reed Financial. "No one wants to see a bad claims or bad employment number. We didn't get one, so that allowed people to focus on other good news."
The Dow Jones industrial average closed up 26.17, or 0.3 percent, at 9,423.68, having declined 31 points Wednesday to snap a four-session winning streak.
The broader market also rose. The Nasdaq advanced 17.01, or 1 percent, to 1,777.55. The last time the tech-focused index closed higher was April 19, 2002, when it finished at 1,796.83.
The Standard & Poor's 500 index edged up 0.92, or 0.1 percent, to 1,003.27.
Advancing issues outnumbered decliners about 2 to 1 on the New York Stock Exchange. Consolidated volume was moderate at 1.82 billion shares, compared with 1.56 billion traded Wednesday.
The Russell 2000 index, which tracks smaller company stocks, rose 5.36, or 1.1 percent, to 494.82. The NYSE composite index gained 11.73 to 5,656.87. The American Stock Exchange composite index inched up 3.82 to 974.11.
The Labor Department reported yesterday that 386,000 newly laid-off workers filed claims for jobless benefits last week, down 17,000 from the previous week. The number is the lowest level of new jobless claims in six months.
The Conference Board, meanwhile, said its Index of Leading Economic Indicators rose by 0.4 percent in July to 112.5, after a revised 0.3 percent increase in the previous month. It was the fourth straight month of gains; the reading met analysts' expectations.
And the Philadelphia Federal Reserve reported its business index in August jumped to 22.1, compared to 8.3 in the previous month. Analysts were expecting a much more modest reading of 10.0.
"The Philly Fed index reading was excellent because it showed new orders and shipments were up," said Neil Massa, equity trader at John Hancock Funds. "For investors looking for a reason that the economy is turning around, that would be a big one."
Stocks have lurched higher in recent weeks as investors remain upbeat about a speedy recovery.
But some analysts caution that the market might be due for a retreat because the economic outlook remains somewhat murky.
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