By Kate Gibson
NEW YORK (MarketWatch) -- U.S. stocks jumped Wednesday,
reclaiming the bulk of the week-to-date losses after data cast an
optimistic light on jobs and consumers as holiday-shopping season
begins.
"The economic data stream continues to perform much better than
expected," said Art Hogan, chief market strategist at Jefferies
& Co.
Economic reports showed U.S. jobless claims last week sliding to
2008 lows and consumer confidence and spending rising.
Data illustrating a steep drop in new-home sales and
manufacturing orders were less positive.
Down 167 points after the past two days of trading, the Dow
Jones Industrial Average (DJI) on Wednesday climbed 151.63 points,
or 1.3%, to 11,187.09, with all but two of its 30 components
trading higher.
The S&P 500 Index (SPX) rose 17.25 points, or 1.5%, to
1,197.98, with the consumer-discretionary sector leading gains
among its 10 industry groups and Tiffany & Co. (TIF) among its
notable advancers.
"The S&P is approaching resistance at 1,200, and that may
provide a cap for today," noted Elliot Spar, market strategist at
Stifel Nicolaus.
If the S&P 500 closes above 1,200 on either Wednesday or
Friday, the scenario would "set the stage for a challenge of the
recent high at 1,227," Spar added in an afternoon research
note.
Tiffany shares rose 5.4% after the upscale jewelry retailer
reported better-than-expected earnings and offered hopeful words
about holiday sales. .
Amazon.com Inc. (AMZN) added 5.5% after Citigroup Inc. said the
online retailer is gaining the most from rising Internet sales.
Since 1983, the S&P 500 has risen the day before
Thanksgiving 80% of the time, said Hogan.
Up 1% for the week so far, the Nasdaq Composite Index (RIXF)
gained 47.32 points, or 1.9%, to 2,542.27.
For every stock that fell, five rose on the New York Stock
Exchange, where nearly 571 million shares had traded as of 3:30
p.m. Eastern.
Confident consumer?
Wednesday's gains came after a report showed jobless claims fell
by 34,000 to 407,000 last week, while the Thomson
Reuters/University of Michigan index of consumer sentiment climbed
to 71.6 in October, its highest level since June.
The data showing a decline in applications for jobless benefits
propelled staffing companies higher, with Monster Worldwide Inc.
(MWW) up 7.9% and Robert Half International Inc. (RHI) and Kforce
Inc. (KFRC) also up, both by about 3%.
Other economic data had demand for new homes and orders for
durable goods declining, while U.S. household purchases gained.
On Thursday, U.S. markets will be closed for the Thanksgiving
holiday, with the stock market slated for an early close
Friday.