Dow Up 45 on Drop in Jobless Claims
By THE ASSOCIATED PRESS
Filed at 10:29 a.m. ET
NEW YORK (AP) -- An unexpectedly sharp decline in jobless claims boosted Wall Street Thursday, sending stocks higher for a third day as investors grew more confident that the economic recovery was firmly underway.
In morning trading, the Dow Jones industrial average was up 44.67, or 0.4 percent, at 10,189.93. That followed a two-day gain of 122 points that sent the blue-chip average to its highest level since May 23, 2002.
The broader market was also higher. The Nasdaq composite index gained 18.96, or 1 percent, to 1,940.29. The Standard & Poor's 500 index rose 5.17, or 0.5 percent, to 1,081.65.
The Labor Department reported Thursday that new jobless claims fell last week by a seasonally adjusted 22,000 to 353,000, the lowest level since Nov. 1. The decline was much larger than analysts' expectations.
Meanwhile, the Conference Board reported that its Composite Index of Leading Economic Indicators rose to 114.2 last month, offering hope that the economic recovery was gaining momentum. The 0.3 percent was in line with analysts' expectations.
Stocks have gained in recent weeks as strong economic data have reinforced investors' expectations of a solid rebound. However, analysts wonder if stock valuations might be getting a bit pricey.
Bed Bath & Beyond jumped $1.94 to $41.90 after the retailer posted quarterly profits that came in higher than analysts' projections.
Honeywell International Inc. rose $1.09 to $31.35 after J.P. Morgan upgraded the company's stock rating to ``overweight'' from ``neutral.''
Morgan Stanley fell $2.42 to $55.21 after the brokerage firm reported quarterly earnings that beat Wall Street's estimates by 4 cents per share.
Goldman Sachs Group Inc. declined $2.19 to $96.16 after the securities firm posted fourth-quarter profits that handily beat analysts' forecasts.
Advancing issues outnumbered decliners 7 to 5 on the New York Stock Exchange. Volume came to 164.12 million shares, compared with 159.42 million traded at the same point Wednesday.
The Russell 2000 index, which tracks smaller company stocks, rose 4.13, or 0.8 percent, to 542.85.
Overseas, Japan's Nikkei stock average finished 0.1 percent higher. In Europe, Britain's FTSE 100 increased 0.6 percent, France's CAC-40 rose 0.3 percent, and Germany's DAX index was up 0.2 percent.
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