By Anora Mahmudova and Barbara Kollmeyer, MarketWatch
NEW YORK (MarketWatch) -- The S&P 500 and Dow Jones
Industrial Average closed at record levels on Thursday as investors
welcomed the Federal Reserve's commitment to low interest rates
long after the ending of monetary stimulus.
Earlier in the session, 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 9.79 points, or 0.5%, to 2,011.36,
closing at a record high. Financials led Thursday's gains.
The Dow Jones Industrial Average (DJI) gained 109.14 points, or
0.6%, to 17,265.99, also setting a new record. The Nasdaq Composite
(RIXF) rose 31.24 points, or 0.7%, to 4,593.43.
Follow today's stock market coverage in a live blog.
According to Peter Cardillo, chief market economist at Rockwell
Global Capital, enthusiasm ahead of Alibaba debut added to an
overall positive market reaction among other factors
Applications for jobless benefits dropped to the lowest level
since mid-July, however, construction started on new U.S. homes
tumbled in August, pulling back after a surge in July.
Separately, U.S. manufacturers in the Philadelphia region
continued to do brisk business in September as hiring intentions
rose to a 31-year high, a strong signal that companies expect
growth to improve over the rest of the year.
News from China boosted global equities. 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.
(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.
Also read: Alibaba IPO gives insiders rare chance to sell early
Rite Aid Corp.(RAD) is tumbling 19% after the drugstore chain
slashed its outlook, blaming generic drugs.
Pier 1 Imports Inc. (PIR) sank 18% 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 closed higher 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) settled
$9 lower at $1,226.9 per troy ounce, pressured by a strong
dollar.
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