Investing.com - U.S. stocks rose on Thursday, as investor brushed off Federal Reserve Chair Janet Yellen's Wednesday comments suggesting rate hikes were possible in mid 2015 and went long on stocks due to solid U.S. data.
At the close of U.S. trading, the Dow Jones Industrial Average rose 0.67%, the S&P 500 index rose 0.60%, while the Nasdaq Composite index rose 0.27%.
Better-than-expected U.S. economic indicators sent stocks rising on Thursday, as expectations began to build that an improving U.S. economy will bolster corporate revenue even if benchmark borrowing costs rise next year.
The Department of Labor reported earlier that the number of individuals filing for initial jobless benefits in the week ending March 15 rose by 5,000 to 320,000 from the previous week’s total of 315,000. Analysts had expected jobless claims to rise by 10,000 last week.
A separate report showed that manufacturing activity in the Philadelphia region expanded at a faster rate than expected in March,
In a report, the Federal Reserve Bank of Philadelphia said that its manufacturing index improved to a reading of 9.0 this month from February’s -6.3 reading. Analysts had expected the index to rise to 3.8 in March.
On the index, a reading above 0.0 indicates improving conditions, below indicates worsening conditions.
The survey’s broadest indicators for general activity, new orders, and shipments increased and recorded positive readings this month, suggesting a return to growth following weather-related weakness in February.
Company employment levels were near steady, but responses reflected optimism about adding to payrolls over the next six months.
The survey's indicators of future activity reflected optimism about continued growth over the next six months.
Soft housing data failed to seriously dampen spirits on Wall Street, as markets dismissed the disappointing numbers as the product of rough winter weather.
The National Association of Realtors reported earlier that existing home sales fell 0.4% to a seasonally adjusted 4.60 million units in February from 4.62 million in January.
February’s pace of sales was the lowest since July 2012.
Markets also looked past Fed Chair Janet Yellen's Wednesday comments.
Stocks dropped after Yellen suggested at a Wednesday press conference that interest rates could rise six months after the Fed's bond-buying program ends.
The Fed is currently buying $55 billion in Treasury and mortgage debt a month, and expectations for the monetary authority to taper that figure gradually and close the program by fall followed by rate hikes in 2015 strengthened the dollar against most other currencies.
Fed asset purchases aim to stimulate the economy by suppressing interest rates to send stocks rising in hopes investing and hiring follow suit.
Leading Dow Jones Industrial Average performers included AT&T, up 3.47%, JPMorgan, up 3.10%, and Microsoft, up 2.69%.
The Dow Jones Industrial Average's worst performers included Visa, down 0.87%, Merck, down 0.72%, and Procter & Gamble, down 0.57%.
European indices, meanwhile, finished largely higher.
After the close of European trade, the EURO STOXX 50 rose 0.38%, France's CAC 40 rose 0.46%, while Germany's DAX 30 rose 0.21%. Meanwhile, in the U.K. the FTSE 100 fell 0.47%.