US stocks rose, with the Standard & Poor’s 500 Index rising for the seventh day in the past eight, after claims for jobless benefits unexpectedly fell and housing starts increased last month.
The Standard & Poor’s 500 Index rose 0.5 per cent to 1,241.59 as of 11.28 am in New York, a day after the benchmark index retreated from its highest level since September 2008. The Dow Jones Industrial Average gained 37.69 points, or 0.3 per cent, to 11,495.16.
“Claims numbers suggest we’ve basically moved up a gear in economic growth,” said David Kelly, who helps oversee $445 billion as chief market strategist for JPMorgan Funds in New York. “The markets have had a nice rally and bond markets had a big selloff.”
The S&P 500 slipped yesterday, dragging the index down from a two-year high. A six-day rally had left the benchmark for US stocks trading at 15.5 times reported earnings, its most expensive level since June.
Builders in the US began work on more homes in November for the first time in three months, showing the industry is struggling to recover. Housing starts rose to a 555,000 annual rate, up 3.9 per cent from October’s 534,000 pace that was higher than initially estimated, Commerce Department figures showed. The median estimate in a Bloomberg News survey called for a 550,000 pace.
The number of US workers filing first-time claims for unemployment benefits unexpectedly declined last week, pointing to a labour market that is on the mend. Applications for jobless insurance payments decreased by 3,000 to 420,000, the lowest in three weeks, Labor Department figures showed. Economists in a Bloomberg survey projected a median rise in claims to 425,000.
Bank of America rose 2.4 per cent to $12.58, the biggest gain in the Dow, after it was said to have begun settlement talks with lawyers representing some of the US’s largest mortgage investors, according to Kathy Patrick, a lawyer for the investors.
Nasdaq OMX, owner of the second-largest US equity exchange, rose the most in the S&P 500 after agreeing to repurchase 22.8 million of its shares from Borse Dubai Ltd.
