Stocks end trading higher after good jobless news

By msnbc.com staff and wire services

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The stock market rallied for a third day Thursday, buoyed by news that weekly jobless claims had dropped to their lowest level since April. The report provides hope the job market is improving.

According to preliminary calculations, the Dow Jones industrial average ended trading 61.84 higher, or 0.51 percent, to 12,169.58. The S&P 500 rose 10.28, or 0.83 percent, to 1,254.00. The Nasdaq was up 21.48, or 0.83 percent, to 2,599.45.

Quincy Krosby, chief market strategist for Prudential Securities, said the reports show that the economy has "grudgingly continued on a positive path." Krosby also said the economy needs to grow at a faster pace than 2 percent to be able to survive any shocks caused by the European debt crisis or a sharp slowdown in China's economy in 2012.

The government lowered its estimate of U.S. economic growth in the July-September quarter to an annual rate of 1.8 percent from 2 percent. That was still the fastest growth this year, up from 1.3 percent in the April-June quarter.

Economists think the improving job market, strong holiday shopping, and cheaper gas prices will leave consumers with more money to spend. That would get the economy growing at an annual rate of more than 3 percent in the final three months of this year, which would be the fastest pace since 3.8 percent growth in the spring of 2010.

Banks and technology stocks were the largest gainers, while utilities and consumer goods companies traded lower.

The Associated Press contributed to this report.

Source: http://bottomline.msnbc.msn.com/_news/2011/12/22/9639584-stocks-close-higher-after-good-jobless-news

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