Investing.com – U.S. stocks closed markedly higher Thursday, as economic data showing the pace of inflation continued to stutter in July dented rate expectations while a rebound in energy lifted sentiment on the broader market.
The Dow Jones Industrial Average closed higher at 21,948. The S&P 500 closed 0.57% higher while the Nasdaq Composite closed at 6428.66, up 0.95%.
In what was a busy day on the economic calendar investors had to content with a slew of economic reports offering a mixed signal on the strength of the U.S. economy.
The trend of slowing sales of US homes continued in July as tight supply of housing weighed on the pace of new listings available for sale.
Pending home sales slid 0.8% in July from the previous month when they rose 1.3%, the National Association of Relators said on Thursday. That missed economists’ expectations for a 0.5% rise.
Meanwhile, consumer spending, which accounts for more than two-thirds of U.S. economic activity, increased 0.3%, the Commerce Department said on Thursday, falling short of expectations of a 0.4% increase.
Better-than-expected initial jobs claims data pointed to continuing US labor market strength while the pace of inflation remained subdued, increasing at its slowest pace in nearly two-years.
Initial claims for state unemployment benefits rose 1,000 to a seasonally adjusted 235,000 for the week ended Aug. 25, the Labor Department said. That beat economists’ forecasts of a 2,000 increase.
In the 12 months through July, the core PCE price index increased 1.4% after advancing 1.5% in June. That was the smallest year-on-year increase since December 2015.
The slew of economic reports comes ahead nonfarm payrolls data due Friday.
On the political front, U.S. Treasury Secretary Steven Mnuchin raised investor hopes of tax-reform being introduced sooner rather than later, after he said on Thursday that President Donald Trump's administration has a detailed plan on tax reform and is on track to implement it by year-end.
'Bulls and Bears' on Wall Street
The top Dow gainers for the session: UnitedHealth Group Incorporated (NYSE:UNH) up 1.5%, Pfizer Inc (NYSE:PFE) up 1.4% and Merck & Company Inc (NYSE:MRK) up 1.2%
Walt Disney Company (NYSE:DIS) down 1.6%, Wal-Mart Stores Inc (NYSE:WMT) down 0.6% and The Travelers Companies Inc (NYSE:TRV) down 0.5%, were among the worst Dow performers of the session.