* Jobless claims fall, consumer sentiment better
* Tiffany jumps on upbeat results
* Dow up 1.2 pct, S&P up 1.3 pct, Nasdaq up 1.9 pct
By Caroline Valetkevitch
NEW YORK, Nov 24 (Reuters) - U.S. stocks advanced on Wednesday as consumer and jobless claims data reinforced the view the economic recovery is gaining steam.
The data bodes well for the holiday shopping season, which traditionally kicks off on Black Friday, the day after Thursday's Thanksgiving holiday, analysts said. The upbeat economic indicators boosted stocks after two days of losses.
"If you look at the longer-term economic trends, consumer spending is continuing to improve. Even the unemployment sitaution, which everyone knows is very bad, is slowly, but surely improving," said Bryant Evans, investment advisor and portfolio manager at Cozad Asset Management, in Champaign, Illinois.
"There is some resilience that I think is reflected in the consumer (sentiment) numbers," said Evans, who is overweight the consumer discretionary sector.
Adding to the upbeat consumer outlook, upscale jeweler Tiffany & Co posted quarterly profit and sales that handily beat estimates and forecast strong holiday sales. Its stock shot up 4.9 percent to $61.12, while the S&P retail index gained 2.4 percent.
The S&P consumer discretionary index, which gained 1.8 percent, has climbed 22 percent since the start of the year and is the best-performing sector in the S&P 500 for the year to date.
Among the day's data were government reports showing weekly U.S. claims for unemployment benefits dropped to their lowest level in more than two years and that consumer spending rose in October.
A private survey found U.S. consumer sentiment rose in November to its highest level since June.
The Dow Jones industrial average added 137.02 points, or 1.24 percent, to 11,173.39. The Standard & Poor's 500 Index rose 15.70 points, or 1.33 percent, to 1,196.43, close to its intraday high. The Nasdaq Composite Index gained 46.90 points, or 1.88 percent, to 2,541.86, near its session high.
Trading volume was light, with many participants out ahead of the holiday.
Stocks still are down roughly 3 percent since early November after hitting a two-year high, with concerns about European debt and worries about tensions on the Korean Peninsula among the biggest drags on the market this week.
Other data showed weakness still remained in the economy. New durable goods orders had their largest drop in nearly two years and sales of new U.S. single-family homes fell unexpectedly in October. (Reporting by Caroline Valetkevitch; Additional reporting by Chuck Mikolajczak; Editing by Jan Paschal)