Investing.com - U.S. stocks closed sharply higher Thursday as upbeat U.S. economic data fuelled the bullish rally.
At the close of U.S. trade, the Dow Jones Industrial Average rose 1.04%, the S&P 500 index added 1.09%, while the Nasdaq Composite index climbed 1.44%.
Sentiment was boosted after the Department of Labor said the number of individuals filing for initial jobless benefits fell to 363,000 last week from 372,000 the previous week, compared to expectations for a decline to 370,000.
The data came on the heels of a report showing that U.S. private sector employment increased more-than-expected in October.
Payroll processing firm ADP said the U.S. private sector added 158,000 jobs this month, surpassing expectations for an increase of 135,000.
But market sentiment continued to be weighed by ongoing uncertainty over when Spain may request a bailout and whether Greece will secure the next tranche of its bailout funding.
Ford saw shares climb 0.90% after the auto maker announced that Alan Mullaly will remain as president and CEO through "at least 2014," while Americas President Mark Fields will be promoted to COO, a step that prepares him to eventually take over as CEO.
Financial stocks added to gains, as U.S. lenders tracked their European counterparts higher. Shares in Bank of America added 0.21% and Citigroup rose 0.56%, while Goldman Sachs and JP Morgan rallied 0.50% and 0.79% respectively.
Also on the upside, Walt Disney gained 1.16% after agreeing on Tuesday to buy filmmaker George Lucas's Lucasfilm in a deal worth USD4.05 billion. The deal that includes the surprise promise of a new film in the series in 2015.
Meanwhile, Pfizer shares tumbled 1.25%, as it posted a profit that matched analysts' forecasts, but revenue fell short following the loss of patent protection on its blockbuster Lipitor cholesterol fighter.
Elsewhere in earnings, ExxonMobil reported quarterly results that topped analysts' predictions though profit dropped from the previous year, sending shares down 0.71%. Rival Chevron was up 0.21%.
Across the Atlantic, European stock markets were sharply higher. The EURO STOXX 50 jumped 0.93%, France’s CAC 40 advanced 0.91%, Germany's DAX climbed 0.84%, while Britain's FTSE 100 rallied 0.90%.
During the Asian trading session, Hong Kong's Hang Seng Index advanced 0.83%, while Japan’s Nikkei 225 Index rose 0.21%.
Also Thursday, the Institute of Supply Management said that its index of manufacturing activity in the U.S. declined unexpectedly in October, ticking down to 51.00 from a reading of 51.30 the previous month.
Analysts had expected the index to improve to 51.50 in October.
Investors are awaiting the non farm payrolls and the unemployment rate from the U.S. on Friday.