New York – Investors regained some of their swagger Thursday, sending stocks higher and the Dow Jones industrials to another record close after oil prices plunged and a drop in jobless claims indicated the economy wasn’t slowing too quickly.
Thursday’s trading stood in sharp contrast to recent sessions in which investors made small bets as they wrestled with whether stocks would eventually push higher with the same vigor as in 2006.
Economic data, such as Thursday’s unemployment figures, and oil prices, which have fallen for four straight days, have drawn the market’s attention as investors try to piece together where Wall Street is headed.
Strength in employment indicates the economy is holding up well as it slows. A number of strong profit forecasts lent support to that notion Thursday. But investors want the economy to show signs of gradual slowing to get an interest-rate cut from the Federal Reserve.
“The markets had a very strong run in the fourth quarter, and we have spent the first week and a half consolidating those gains,” said Steven Goldman, chief market strategist at Weeden & Co. He contends stocks remain “in a pretty good period,” as with 2006.
The Dow Jones industrial average rose 72.82 to 12,514.98, topping the previous record close, on Dec. 27, by 4.41 points.
Broader stock indicators also rose. The Standard & Poor’s 500 index came within range of its six-year closing high, rising 8.97 to 1,423.82. The Nasdaq composite index advanced 25.52 to 2,484.85.
Bonds fell sharply as the drop in jobless claims pointed to a healthy economy and stirred some concerns that the Fed might not lower rates. Adding to concern, an auction of Treasury Inflation-Protected Securities drew a lackluster response. The yield on the benchmark 10-year Treasury note rose to 4.74 percent from 4.69 percent late Wednesday.
