Wall Street was higher on Thursday as investors attempted to push the rally further after the latest economic data suggested a pickup in the labor market.
In afternoon trading the Standard Poor’s 500-stock index added 0.2 percent, the Dow Jones industrial average rose 0.3 percent, and the Nasdaq composite index was up 0.2 percent.
On Wednesday, the Dow surged to record levels for a second day, while the S.P. 500 closed 1.5 percent below its own record close.
A strengthening economy and loose monetary policy by central banks around the world have pushed Wall Street equity markets higher this year. While some expect the market will ease off its current lofty levels, so far dips have been short-lived as investors look for an opportunity to buy.
“It appears the positive feeling in this market has shifted a bit from waiting for a pullback to put money to work, to not missing a train that’s leaving the station,” said Art Hogan, managing director of Lazard Capital Markets in New York.
Data from the government on Thursday showed the number of Americans filing claims for unemployment benefits unexpectedly fell last week to a seasonally adjusted 340,000. It was the second straight week of declines.
“It’s certainly welcoming to the market and it’s once again supporting the thought that the economic recovery is strengthening,” said Andrew
Also on Thursday, several retailers, including Costco Wholesale and Limited Brands, announced better-than-expected sales for February. The data was a rebound from the previous month, when shoppers first felt the effect of a payroll tax increase.
Investor attention will remain on the labor market ahead of Friday’s nonfarm payroll report, which is expected to show that the economy added 160,000 jobs in February. While it has been a soft spot in the economic recovery, the labor market is seen as healing slowly.
Economists say job gains of at least 250,000 a month over a sustained period are needed to have a significant impact on the unemployment rate.
Among individual stocks, the network equipment maker Ciena jumped 15.5 percent after it reported a smaller quarterly loss.
Colgate-Palmolive rose 0.3 percent after it said it was planning a two-for-one stock split and would increase its dividend.
Dell said Carl C. Icahn has urged the company to pursue a leveraged recapitalization and pay a $9 per share dividend instead of going private. The Dell chief executive, Michael S. Dell, has already struck a $24.4 billion deal to take the company, the No. 3 maker of personal computers, private. Its shares were 0.6 percent lower.
Article source: http://www.nytimes.com/2013/03/08/business/economy/daily-stock-market-activity.html?partner=rss&emc=rss
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