Stocks Finish Higher on Strong U.S. Data

NEW YORK (TheStreet) -- The major U.S. indices finished about 1% higher Thursday on a set of strong domestic economic headlines.

The Dow Jones Industrial Average gained 123.1 points, or 1%, at 12,904, bouncing back from an almost 100-point drop the previous day, its worst session of the year. The S&P 500 rose 14.8 points, or 1.1%, at 1358. The Nasdaq added 44 points, or 1.5%, at 2960. All major sectors had been trading in the green, led by basic materials, consumer cyclical stocks and technology.

According to S&P Capital IQ, the S&P 500 was less than 1% away from eclipsing its 1363 recovery high as of Feb. 14, and could succeed in the coming weeks. However, says, Sam Stovall, chief equity strategist, S&P Capital IQ, "just as it takes several energetic attempts to open a rusty door," the index will need to backtrack a few paces before achieving the necessary momentum.

A spate of better-than-expected domestic data was lifting sentiment. The number of Americans seeking first-time unemployment benefits fell 13,000 to 348,000 in the week ended Feb. 11 from a revised 361,000 the previous week, according to a Labor Department report. Economists expected claims to rise to 365,000 from an originally reported 358,000.

"That today's jobless number was not only better than expected but much better than expected can only be received warmly, providing further evidence that at least on the firing side of things, the labor market is improving considerably," Dan Greenhaus, chief global strategist, BITG, said in a note. "If this trend continues, one would have to believe, given previous relationships, that the monthly employment report will begin printing 200,000 plus job additions on a regular basis."