By Kate Gibson
NEW YORK (MarketWatch) -- U.S. stocks rallied in thin
pre-holiday trade Wednesday, reclaiming ground lost in the previous
session after data cast an optimistic light on jobs and consumers
as holiday-shopping season begins.
The market will be closed on Thursday for the Thanksgiving
holiday.
"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.
The Dow Jones Industrial Average (DJI) finished up 150.91
points, or 1.4%, at 11,187.28, with all but three of its 30
components trading higher. The gain more than made up for a
142-point slide in the previous session.
The S&P 500 Index (SPX) rose 17.62 points, or 1.5%, to
1,198.35, with the industrials and consumer-discretionary sectors
leading gains among its 10 industry groups and Tiffany & Co.
(TIF) among its notable advancers.
"The S&P is approaching resistance at 1,200," noted Elliot
Spar, market strategist at Stifel Nicolaus.
If the S&P 500 closes above 1,200 on 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 5.3% after the upscale jewelry retailer
reported better-than-expected earnings and offered hopeful words
about holiday sales. .
Amazon.com Inc. (AMZN) added 5.4% 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 48.17 points, or 1.9%, to 2,543.12.
For every stock that fell, five rose on the New York Stock
Exchange, where nearly 829.8 million shares traded.
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 shares of staffing companies higher, with Monster
Worldwide Inc. (MWW) up 9.6% and Robert Half International Inc.
(RHI) rose 3.7% and Kforce Inc. (KFRC) gained 2.9%.
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.