By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks extended gains on Thursday
as investors welcomed a larger-than-expected drop in weekly jobless
claims and upbeat earnings from companies such as Walt Disney
Co.
The S&P 500 index (SPX) added 15.3 points, or 0.9%, at
1,766.99. The Dow Jones Industrial Average (DJI) gained 147 points,
or 1%, to 15,588.96. The Nasdaq Composite (RIXF) rose 46.4 points,
or 1.1%, to 4,057.37.
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"Market pullbacks are normal and we think concerns about
emerging markets reminded investors that markets do not always go
in a straight line," said Kate Warne, investment strategist at
Edward Jones.
"Apart from a view data points that were disappointing, recent
reports have been positive. Earnings have been positive. And the
Fed is still rescuing, even as it tries to reduce the support.
Considering such a background, it would take some really bad news
for stocks to fall dramatically," Warne added.
Helping the sentiment was the data on initial weekly jobless
claims. The number of people who applied for unemployment benefits
for the first time fell by 20,000 to 331,000 last week, better than
forecasts for 337,000. In other economic news, the U.S. trade
deficit widened more than expected and productivity increased
slightly less than anticipated.
The data come a day after a disappointing report on
private-sector jobs growth from ADP and a day ahead of key
nonfarm-payroll figures.
Across the Atlantic, the ECB left key rates unchanged, and the
central bank's president, Mario Draghi, said at the news conference
that medium- and long-term inflation expectations remain
well-anchored, with no real deflation risk. Follow our live blog of
Draghi's news conference
The Bank of England, meanwhile, left policy unchanged and its
quantitative easing program steady.
Earnings results released after the market close on Wednesday
and before the opening bell Thursday were mixed.
Twitter Inc. (TWTR) plunged after earnings disappointed
investors late Wednesday.
Shares of Green Mountain Coffee Roasters (GMCR) surged after the
company said it would sign a 10-year drink deal with Coca-Cola
(KO). Coca-Cola is taking a 10% stake in the company for $1.25
billion.
Shares of GM (GM.XX) fell after fourth-quarter profit missed
expectations.
Costco Wholesale Corp. (COST) shares rose after the retailer
reported a rise in same-store sales.
Akamai Technologies Inc. (AKAM) shares soared after
fourth-quarter earnings increased 18% and revenue jumped in results
released late Wednesday.
In other markets, Asian stocks had a mixed day, while the
European stock markets pared gains in afternoon action on Thursday
as European Central Bank President Mario Draghi explained why the
central bank decided to keep rates on hold earlier in the day. The
U.S. dollar slipped, gold and natural gas climbed ahead of supply
data.
More stories from MarketWatch:
Jobless claims drop 20,000 to 331,000
Twitter user growth sparks investor jitters
Sochi's messy start, Twitter's pain and Salesforce.com's bull
setup
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