Investing.com - U.S. stocks hit record highs on Thursday after a strong weekly jobless claims report gave investors a double shot of optimism. The Dow Jones Industrial Average closed above 16,000 for the first time ever amid sentiments that the U.S. economy is improving though the Federal Reserve will continue stimulating the economy with stock-boosting bond purchases in the coming months to be sure recovery can stand on its own.
Stimulus tools such as the Fed's USD85 billion in monthly bond purchases drive down interest rates to spur recovery, boosting stock prices in the process.
At the close of U.S. trading, the Dow Jones Industrial Average finished up 0.69% at16,099.99, the S&P 500 index rose 0.81%, while the Nasdaq Composite index rose 1.22%.
Data released earlier revealed manufacturing activity in the Philadelphia region expanded at the slowest pace in six months in November.
The Federal Reserve Bank of Philadelphia said that its manufacturing index fell to 6.5 in November from 19.8 in October.
Economists had expected the index to decline to 15.0.
The employment component of the index dropped to 1.1 from a reading of 15.1 last month, and the data fanned market expectations for the Federal Reserve to keep its USD85 billion in monthly asset purchases in place through early 2014.
On the flipside, the Department of Labor said the number of individuals filing for initial jobless benefits in the U.S. last week fell by 21,000 to a seasonally adjusted 323,000, beating expectations for a decline of 9,000.
The data pushed stocks higher by fueling hopes that greener pastures await the U.S. economy that will give stocks room to rise on fundamentals when Fed support tapers and eventually ends.
Separate government data revealed that the U.S. producer price index declined 0.2% in October, in line with expectations, while the country's core PPI rose 0.2%, beating market calls for a 0.1% gain.
Leading Dow Jones Industrial Average performers included Intel, up 2.71%, American Express, up 2.06%, and JPMorgan Chase, up 1.98%.
The Dow Jones Industrial Average's worst performers included Caterpillar, down 0.67%, IBM, down 0.58%, and AT&T, down 0.30%.
European indices, meanwhile, finished largely lower.
After the close of European trade, the EURO STOXX 50 fell 0.01%, France's CAC 40 fell 0.34%, while Germany's DAX 30 fell 0.07%. Meanwhile, in the U.K. the FTSE 100 finished up 0.09%.
Stimulus tools such as the Fed's USD85 billion in monthly bond purchases drive down interest rates to spur recovery, boosting stock prices in the process.
At the close of U.S. trading, the Dow Jones Industrial Average finished up 0.69% at16,099.99, the S&P 500 index rose 0.81%, while the Nasdaq Composite index rose 1.22%.
Data released earlier revealed manufacturing activity in the Philadelphia region expanded at the slowest pace in six months in November.
The Federal Reserve Bank of Philadelphia said that its manufacturing index fell to 6.5 in November from 19.8 in October.
Economists had expected the index to decline to 15.0.
The employment component of the index dropped to 1.1 from a reading of 15.1 last month, and the data fanned market expectations for the Federal Reserve to keep its USD85 billion in monthly asset purchases in place through early 2014.
On the flipside, the Department of Labor said the number of individuals filing for initial jobless benefits in the U.S. last week fell by 21,000 to a seasonally adjusted 323,000, beating expectations for a decline of 9,000.
The data pushed stocks higher by fueling hopes that greener pastures await the U.S. economy that will give stocks room to rise on fundamentals when Fed support tapers and eventually ends.
Separate government data revealed that the U.S. producer price index declined 0.2% in October, in line with expectations, while the country's core PPI rose 0.2%, beating market calls for a 0.1% gain.
Leading Dow Jones Industrial Average performers included Intel, up 2.71%, American Express, up 2.06%, and JPMorgan Chase, up 1.98%.
The Dow Jones Industrial Average's worst performers included Caterpillar, down 0.67%, IBM, down 0.58%, and AT&T, down 0.30%.
European indices, meanwhile, finished largely lower.
After the close of European trade, the EURO STOXX 50 fell 0.01%, France's CAC 40 fell 0.34%, while Germany's DAX 30 fell 0.07%. Meanwhile, in the U.K. the FTSE 100 finished up 0.09%.