U.S. Stocks Advance After Jobless Claims Report, Retail Sales [View All]

[NJmaverick]

U.S. stocks rose, with the Standard & Poor’s 500 Index posting its first three-day rally since April, as a drop in jobless claims and higher-than-forecast sales at some retailers bolstered confidence in the economy.

Caterpillar Inc. and Alcoa Inc. climbed at least 0.9 percent after the Labor Department said initial jobless claims decreased by 21,000 to 454,000 in the week ended July 3, lower than the median economist estimate in a Bloomberg survey. J.C. Penney Co. and Limited Brands Inc. surged more than 1.9 percent after reporting June sales that beat estimates.

The S&P 500 climbed 0.6 percent to 1,066.98 as of 9:33 a.m. in New York and European equities advanced after the International Monetary Fund increased its forecast for global economic growth. The Dow Jones Industrial Average rose 51.84 points, or 0.5 percent, to 10,070.12.

“It’s very encouraging,” said Stanley Nabi, New York- based vice chairman of Silvercrest Asset Management Group, which manages $9 billion. “The combination of better-than-expected jobless claims and good numbers from some of the largest retailers removed some of the gloom from the market. It was also positive to see the IMF raising its estimates. I think we’re going to have very strong second-quarter earnings. That should support rising stock prices.”

http://www.bloomberg.com/news/2010-07-08/u-s-stock-index-futures-decline-after-rally-symantec-retreats-in-europe.html