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NEW YORK: Wall Street stocks soared on Thursday in the strongest rally since July, after better-than-expected US economic data on the weak labour market and positive company news.
The Dow Jones Industrial Average surged 203.82 points (2.08 percent) to close at 10,005.96, breaching the psychological 10,000 barrier for the first time in two weeks.
The tech-heavy Nasdaq composite vaulted 49.80 points (2.42 percent) to 2,105.32 while the broad Standard & Poor's 500 index advanced 20.13 points (1.92 percent) to finish at 1,066.63.
The Dow had not closed above 10,000 since October 22; all 30 components of the blue-chip index finished higher.
The broad rally came after positive economic data lifted sentiment ahead of Friday's anxiously awaited release of October data on the job market and unemployment.
"A larger-than-expected decline in jobless claims and a bullish profit report from Dow member Cisco Systems sparked a rally on Wall Street today, helping the Dow regain the 10,000 level," Charles Schwab & Co. analysts said in a client note.
Labour Department data showed initial claims for US unemployment insurance benefits fell more than expected last week. Traders were bracing for the October labour market, with most analysts expecting the unemployment rate to 9.9 percent from a 26-year high of 9.8 percent in September.
Separately, the department said non-farm productivity soared a more than expected 9.5 percent in the third quarter to the highest level in six years as companies shed staff.
Cisco, which recently joined the Dow index of 30 blue-chip shares, leapt 2.75 percent to 23.93 dollars after reporting earnings and revenue above market expectations and forecasting higher sales in the current quarter.
Scott Marcouiller of Wells Fargo Advisors said that the networking specialist lifted technology and industrial shares.
"Cisco Systems said it sees 'economic recovery' around the world, reported earnings that beat expectations, and said it will boost its share buyback plan," he said.
Hyatt Hotels Corp. soared 12.0 percent to 28.00 dollars in the second-biggest IPO in New York this year, after Banco Santander.
The Chicago-based global hotels and resorts chain floated 38 million shares priced at 25 dollars per share.
IMS Health posted a robust 23.32 percent rise to 20.73 dollars. The provider of market intelligence to the pharmaceutical and healthcare industries announced it had agreed to be acquired by investment funds managed by TPG Capital and the CPP Investment Board. The transaction was valued at 5.2 billion dollars, including the assumption of debt.
Bonds firmed. The yield on the 10-year US Treasury bond slipped to 3.533 percent from 3.546 percent on Wednesday and that on the 30-year bond dropped to 4.412 percent from 4.434 percent. Bond yields and prices move in opposite directions. - AFP/de
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