Dow stretches longest win streak since November 1996
By Kate Gibson, MarketWatch
NEW YORK (MarketWatch) — U.S. stocks advanced Thursday, lifting the S&P 500 index near its all-time closing high, as investors embraced an unexpected drop in weekly jobless claims.
Bolstering sentiment, the Labor Department reported initial applications for unemployment benefits declined by 10,000 to 332,000 last week.
“Jobless claims as a percent of the U.S. workforce have now fallen to a level last seen during the strong expansion phase of the prior two economic expansions,”noted Fred Dickson, chief investment strategist at Davidson Cos.
Separately, the Labor Department reported a 0.7% jump in producer prices in February, boosted by a jump in gasoline prices.
Stretching gains into a 10th consecutive session, its longest streak in 16 years, the Dow Jones Industrial Average DJIA +0.40% climbed 55.12 points, or 0.4%, to 14,510.40.
The S&P 500 index SPX +0.38% rose 5.15 points, or 0.3%, to 1,559.67, leaving it 5 points shy of its record close set in October 2007.
“While the stock market appears somewhat extended short-term and ripe for a minor pullback, the positive economic data flow and dollar strength appear to be encouraging investors to put money to work in stocks,” noted Fred Dickson, chief investment strategist at Davidson Cos.
Energy and technology were the top performers among the index’s 10 major industry groups, while health-care and consumer-discretionary companies weighed.
The Nasdaq Composite Index COMP +0.30% advanced 8.59 points, or 0.3%, to 3,253.70.
The Chicago Board Options Exchange Volatility Index VIX -1.69% , a gauge of the price of employing options as a hedge against declines in the S&P 500, declined 1.7% to 11.63.
For every two stocks falling roughly three rose on the New York Stock Exchange, where 194 million shares had traded as of 11:40 a.m. Eastern.
Composite volume hit 1.2 billion.
Treasury yields rose, with the 10-year benchmark 10_YEAR +1.63% above 2%, and the price of oil climbing, with the crude futures contract for April delivery CLJ3 +0.21% up 26 cents at $92.78 a barrel on the New York Mercantile Exchange.
Apple Inc. AAPL +0.99% rose 0.8% after a BTIG Research analyst upgraded the consumer-technology company to buy from neutral.
E-Trade Financial Corp. ETFC -6.43% shed 6.1% after Citadel LLC said it would sell its remaining equity stake.
Men’s Wearhouse Inc. MW +19.15% leapt 20% as the clothing company said it had retained an investment bank to help it explore strategic options for its K&G store chain.
Kate Gibson is a reporter for MarketWatch, based in New York.
