By Anora Mahmudova
NEW YORK (MarketWatch) -- U.S. stocks rose on Thursday after
data showed a decline in weekly jobless claims, with the Dow Jones
Industrial Average adding more than 100 points and on track for its
50th record close this year.
The Dow Jones Industrial Average (DJI) jumped 116.24 points, or
0.7%, to 16,473.30, on track for its 6th straight record close and
50th record close of the year.
The S&P 500 (SPX) added 8.23 points, or 0.4%, to 1,841.54,
putting it on track to close at a record level for the 44th time
this year.
The Nasdaq Composite (RIXF) gained 11.81 points, or 0.3%, to
4,167.25.
The 10-year Treasury yield edged higher to trade above 3% on
Thursday for the first time since September as rates moved higher
in the wake of the Federal Reserve decision to reduce its asset
purchases. Rising 10-year yields are seen as a sign of rising
interest rates.
The Dow and S&P 500 closed at record highs on Tuesday in a
holiday-shortened session and were closed on Wednesday for
Christmas. Historically, markets see abnormally high returns in the
trading days between Christmas and New Year's Day. Bill Stone,
chief investment strategist at PNC Asset Management Group, gave
three reasons for such returns: portfolio adjustments for
maximizing tax benefits before year end, investor optimism
associated with the holiday season or the fact that a large number
of short sellers are on vacation until the new year.
In economic news, the Labor Department said on Thursday that the
number of Americans claiming weekly unemployment benefits for the
first time dropped by 42,000 to 338,000. However, weekly claims
tend to be volatile and are distorted by seasonal changes. The
four-week average, which tries to smooth out volatility, rose 4,250
to 348,000. The overall trend indicates that jobless claims, a
proxy for layoffs, are low, and that workers are gaining confidence
in the labor market.
Shares of Urban Outfitters Inc. (URBN) rose 2.9%, making it the
best performer on the S&P 500 by midday on Thursday.
Shares of Twitter Inc. (TWTR) continued their meteoric rise,
gaining 3.1% on Thursday, reaching their highest level ever. They
rose more than 70% this month.
Among retailers, Fossil Group Inc. (FOSL) rose 1.4%, while Bed
Bath & Beyond Inc. (BBBY) gained 1%. However, eBay Inc. (EBAY)
shares fell 2.2%.
Tesla Motors Inc. (TSLA) shares rose 2.7%, extending a 5.5% gain
from Tuesday when the car-maker's top safety rating was re-affirmed
by the National Highway Traffic Safety Administration.
BlackBerry Ltd. (RIMM) shares slid 7.7% after news that the
mobile phone maker's co-founder and co-chief executive officer Mike
Lazaridis had dropped a plan to buy the company.
In Japan, the Nikkei 225 index extended its six-year high,
pushing above 16,000 as the yen (USDJPY) weakened against the
dollar, but China's Shanghai Composite fell on disappointment over
a lack of additional cash injections from the central bank.
European markets were closed on Thursday.
Metals futures rose in thin, post-Christmas trade, with gold
futures adding 0.7% and silver futures jumping 2%.Oil futures also
edged higher in choppy activity.
More must-reads from MarketWatch:
Jobless claims fall 42,000; biggest drop in 13 months
Jeff Reeves confesses to his stupidest investment ideas of
2013
Best day to play, 'worst-Christmas-ever' stocks and Japan a
go-go
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