Major Averages Close In Positive Territory Following Light Trading Day

(RTTNews) - While trading activity was somewhat subdued, stocks moved mostly higher over the course of the day trading on Thursday. The markets extended a recent upward trend, benefiting from a positive reaction to upbeat jobs data.

Optimism about the outlook for the economy contributed to the strength on Wall Street following the release of a report from the Labor Department showing a steep drop in weekly jobless claims in the week ended December 21st.

The notable decrease partly offset the sharp jump seen in the first week of December, reflecting the volatility typically seen during the holiday season.

The data extended a recent string of positive reports that have generated optimism that the economic momentum is strong enough to withstand the Federal Reserve's recently announced decision to begin scaling back its stimulus program.

Nonetheless, trading volume was well below average, as many traders remained away from their desks following the Christmas Day holiday on Wednesday.

Most of the major sectors ended the day showing only modest moves, although some strength was visible among telecom, oil, and defense stocks.

The major averages all ended the day in positive territory, with the Dow and the S&P 500 reaching new record closing highs. The Dow jumped 122.33 points or 0.8 percent to 16,479.88, the Nasdaq rose 11.76 points or 0.3 percent to 4,167.18 and the S&P 500 climbed 8.70 points or 0.5 percent to 1,842.02.