MARKET SNAPSHOT: U.S. Stocks Rise After Jobless-claims Drop

By Victor Reklaitis, MarketWatch

NEW YORK (MarketWatch) -- U.S. stocks rose on Thursday, boosted by better-than-expected data on weekly jobless claims and as investors reconsidered their concerns about the Federal Reserve's potential reduction in its bond-buying program.

Andrew Wilkinson, chief economic strategist at Miller Tabak & Co., pointed out in a note Thursday that "any reduction in the flow of purchases by the Fed inherently smacks of economic recovery."

The market is also taking in weaker-than-expected manufacturing data and speeches by Federal Reserve officials.

The S&P 500 (SPX) was last up 9 points, or 0.5%, to 1,790, while the Dow Jones Industrial Average (DJI) advanced 73 points, or 0.5%, to 15,974.

The Nasdaq Composite (RIXF) gained 31 points, or 0.8%, to 3,952.

Peter Garnry, head of equity strategy at Saxo Bank, suggested that traders have a fear of missing out in a rally that has left the S&P 500 up by about 25% for the year. He said in emailed comments that the "strong underlying force right now in equities is the momentum effect." He added that a "sense is spreading that if you are not on the bandwagon, your performance will look bad."

On Wednesday, stocks slumped after minutes from the October Fed meeting showed the central bank was on track to slow its bond-buying program that has helped power stocks to record levels.

* Today's market-moving news: The Labor Department said weekly jobless claims fell by 21,000 to 323,000, better than forecasts for 334,000. In addition, wholesale prices dropped 0.2% last month, reflecting the lack of inflationary pressure in the U.S. economy. On the downside, the Philadelphia Fed's index of manufacturing conditions dropped to 6.5 in November, well below expectations, but the market showed little reaction to that report. Meanwhile, Fed Governor Jerome Powell was expected to speak on financial reform at 9:45 a.m. Eastern, and Richmond Fed President Jeffrey Lacker will speak on the economic outlook at 12:30 p.m. Get more details: Spotlight on the economy

* Today's movers & shakers: Retailers have dropped in the wake of disappointing quarterly results or outlooks. Target Corp. was down 4% after posting weaker margins and earnings at its U.S. business, while Dollar Tree Inc. dropped 5% after its earnings fell in the third quarter. Read more in the Movers & Shakers column.

* The buzz: Goldman Sachs sees a 67% probability of the S&P 500 falling 10% at some point in 2014. Meanwhile, Schaeffer's Investment Research pointed out that since 1991, the S&P has always gained in the year that came after a 20%-plus move for that benchmark index.

* Other markets: A French purchasing managers' index showed growth slowing, while in Germany the PMI number rose to a 29-month high, leaving European stocks mostly lower. Chinese manufacturing activity showed a deceleration, which hit Hong Kong stocks. Gold prices extended losses on Thursday, while oil prices edged higher.

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