By Anora Mahmudova and Barbara Kollmeyer, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks opened higher on Thursday,
sending the S&P 500 and Dow Jones Industrial Average above
their previous closing highs.
Investors cheered China's efforts to boost economic growth,
while upbeat jobs data outweighed weakness in U.S. housing.
The S&P 500 (SPX) added 7 points, or 0.4%, to 2,008. The Dow
Jones Industrial Average (DJI) gained 52 points, or 0.3%, to
17,220. The Nasdaq Composite (RIXF) began the day up 16 points, or
0.4%, to 4,570.
Follow today's stock market coverage in a live blog.
Better-than-expected reading on jobless claims was countered by
disappointing data from the housing market. Applications for
jobless benefits dropped to the lowest level since mid-July,
signaling that employers are laying off very few workers, according
to government data released Thursday.
However, construction started on new U.S. homes tumbled in
August, pulling back after a surge in July, signaling some
shakiness in the housing market's recovery, according to government
data released Thursday.
China's central bank cut short-term borrowing costs for banks on
Thursday, the same week it announced a cash injection into the
country's five biggest banks. For markets, this is a "massive
statement of intent," amid growth concerns for the country, said
Craig Erlam, market analyst at Alpari U.K.
At 10 a.m. Eastern, the Federal Reserve Bank of Philadelphia
September monthly reading on regional manufacturers is due and
expected to weaken from August.
(Also see: Credit Suisse sticks to stocks, but sees a correction
ahead
http://blogs.marketwatch.com/thetell/2014/09/17/credit-suisse-sees-sp-500-correction-coming-in-2015-but-sticks-to-stocks/?link=instory.)
Stocks to watch: Alibaba (BABA) is expected to start trading on
the New York Stock Exchange on Friday morning. The initial public
offering could raise over $25 billion, making it the biggest ever.
Yahoo! Inc (YHOO) which has a nearly 23% stake in Alibaba has been
riding the pre-IPO wave and rose 1.24%. Also read: Alibaba IPO
gives insiders rare chance to sell early
Rite Aid Corp.(RAD) is tumbling 14% after the drugstore chain
slashed its outlook, blaming generic drugs.
Pier 1 Imports Inc. (PIR) sank 17% after earnings fell short of
hopes and the company cut its forecast for the year late Wednesday.
(Read more about the day's notable movers here
http://www.marketwatch.com/story/epiq-surges-on-activist-stake-rite-aid-sinks-2014-09-18.).
Other markets: The FTSE 100 edged lower as Scottish voters
headed to the polls, with indications still pointing to a narrow
victory for unionists.
European stocks also got a lift from China's cut in borrowing
costs. Japanese stocks climbed to an eight-month closing high, as
the yen(USDJPY) hit a six-year low against the greenback, aiding
export-related stocks.
The euro (EURUSD) held steady after the European Central Bank
allotted 82.6 billion euros in the first round of its new four-year
loans, though that take-up fell short. Gold prices (GCZ4) fell 1%,
pressured by a strong dollar.
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