Stocks rose on Thursday on strong job market data and hopes the first rate cut by the European Central Bank in 10 months would help shore up the euro zone economy.

By the end of trading the Standard Poor’s 500-stock index gained 0.9 percent, the Dow Jones industrial average was 0.9 percent higher, and the Nasdaq composite rose about 1.3 percent.

Data showed the number of Americans filing new claims for jobless benefits fell sharply last week to a five-year low. That followed a recent string of underwhelming data, including a slow rate of growth in factory activity in the United States and China.

In an effort to bolster the recession-hit euro zone economy, the European Central Bank cut interest rates for the first time in 10 months and held out the possibility of further policy action.

The central bank’s move followed Wednesday’s Federal Reserve statement that it would continue its bond buying scheme to keep interest rates low and spur growth, and added it would step up purchases if needed.

Earnings reports helped marginally, with Visa, up nearly 5.7 percent, as one of the highlights.

Market participants shifted focus this week to macroeconomic news as some of the biggest American companies have already reported earnings, according to Art Hogan, managing director at Lazard Capital Markets in New York.

“Three-fourths of the macro concerns this week have been positive. Factory activity was not anything to write home about, but the Fed, the E.C.B. and now jobless claims were good,” he said. “With a macro focus, the market seems to not be finding any resistance.”

General Motors rose 3.3 percent after reporting a stronger-than-expected quarterly profit as its North American business improved and its loss in Europe was smaller than Wall Street estimated.

Shares of Facebook Inc rose 5.6 percent after the social network said late Wednesday its mobile advertising revenue growth gained momentum in the first three months.

Other data showed the United States trade deficit fell more than expected in March as imports recorded their biggest drop since 2009, the latest sign of slowing domestic demand.

Article source: http://www.nytimes.com/2013/05/03/business/daily-stock-market-activity.html?partner=rss&emc=rss