U.S. stocks rise; sentiment bolstered by data

NEW YORK (MarketWatch) 

U.S. stocks climbed Thursday, lifting the S&P 500 back into positive turf for the year, after a report illustrating the U.S. labor market is healing as 2012 approaches.

Data from the Labor Department had U.S. jobless claims came in at 381,000, up from 366,000 the prior week. But the four-week moving average fell to 375,000 last week, with fewer Americans filing for jobless benefits during the past month than at any time in the past three years.
“This is the fourth week that claims have held below 400,000, which is considered a break-even point in job creation,” said Fred Dickson, chief investment strategist at Davidson Cos.
Recouping nearly all of the prior day’s 140-point fall, the Dow Jones Industrial Average  closed at 12,287.04, up 135.63 points, or 1.1%.
All 30 of its components gained, with the blue chips up 6.1% for 2011, with one session to go.
Up 0.4% for the year, the S&P 500 Index  rose 13.38 points, or 1.1%, to 1,263.02, with financial firms pacing gains that including all 10 of its major industry groups.
The Nasdaq Composite gained 23.76 points, or 0.9%, to 2,613.74.
With one session left for 2011, the index is off 1.5% from the end of 2010.
For every stock that fell, nearly four gained on the New York Stock Exchange, where a paltry 352 million shares traded. Composite volume neared 2.3 billion.
On the New York Mercantile Exchange, crude-oil futures  finished at $99.65 a barrel, up 29 cents, or 0.3%.
Gold futures fell for a sixth session, losing $23.20, or 1.5%, to end at $1,540.90 an ounce on the Comex division of the Nymex.
Under contract
The National Association of Realtors reported the number of Americans signing contracts to purchase previously owned homes climbed a far-more-than forecast 7.3% in November.
Overseas, Italy sold 7.02 billion euros, or $9 billion, of bonds, less than targeted, as borrowing costs fell in the nation’s last debt auction of 2011.
“There are no signs of new investment positions heading into year end, and that means we are not likely to get an exciting finish to 2011,” said Marc Pado, U.S. market strategist at Cantor Fitzgerald.
“The fact is, investors are writing off 2011,” said Pado, noting the S&P looked to be ending the year flat, with the Dow up and Nasdaq down.
“If European news can stay out of the way, investors can focus on earnings next month, but that’s a tall order,” he said.
On Wednesday, worries about Europe’s debt crisis had U.S. stocks closing with sharp losses, erasing the S&P 500’s small rise for the year and retreating back below its 200-day moving average.
Next Friday brings the government’s payrolls report for December, with the data viewed as the next key hurdle for equities, at least on the domestic front