MARKET SNAPSHOT: U.S. Stocks Rally On Data, Upbeat Earnings

By Anora Mahmudova, MarketWatch

NEW YORK (MarketWatch) -- U.S. stocks extended gains on Thursday as investors welcomed a larger-than-expected drop in weekly jobless claims and upbeat earnings from companies like Walt Disney Co.

The S&P 500 index (SPX) added 15.3 points, or 0.9%, at 1,766.99. The Dow Jones Industrial Average (DJI) gained 137 points, or 0.9%, to 15,588.96. The Nasdaq Composite (RIXF) rose 37.4 points, or 0.9%, to 4,057.37.

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"Market pullbacks are normal and we think concerns about emerging markets reminded investors that markets do not always go in a straight line," said Kate Warne, investment strategist at Edward Jones.

"Apart from a view data points that were disappointing, recent reports have been positive. Earnings have been positive. And the Fed is still rescuing, even as it tries to reduce the support. Considering such a background, it would take some really bad news for stocks to fall dramatically," Warne added.

Helping the sentiment was the data on initial weekly jobless claims. The number of people who applied for unemployment benefits for the first time fell by 20,000 to 331,000 last week, better than forecasts for 337,000. In other economic news, the U.S. trade deficit widened more than expected and productivity increased slightly less than anticipated.

The data come a day after a disappointing report on private-sector jobs growth from ADP and a day ahead of key nonfarm-payroll figures.

Across the Atlantic, the ECB left key rates unchanged, and the central bank's president, Mario Draghi, said at the news conference that medium- and long-term inflation expectations remain well-anchored, with no real deflation risk. Follow our live blog of Draghi's news conference

The Bank of England, meanwhile, left policy unchanged and its quantitative easing program steady.

Earnings results released after the market close on Wednesday and before the opening bell Thursday were mixed.

Twitter Inc. (TWTR) plunged 22.5% after earnings disappointed investors late Wednesday.

Shares of Green Mountain Coffee Roasters (GMCR) 29.8% surged after the company said it would sign a 10-year drink deal with Coca-Cola (KO). Coca-Cola is taking a 10% stake in the company for $1.25 billion.

Costco Wholesale Corp. (COST) shares rose 2.9% after the retailer reported a rise in same-store sales.

Akamai Technologies Inc. (AKAM) shares soared 19.8% after fourth-quarter earnings increased 18% and revenue jumped in results released late Wednesday.

In other markets, Asian stocks closed mostly higher, except for the Nikkei 225, while the European stock markets rallied as the European Central Bank left a key rate unchanged. The U.S. dollar slipped, gold and natural gas climbed ahead of supply data.

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