Stocks Close Higher On Upbeat Data, Draghi Comments - U.S. Commentary

(RTTNews) - After showing a lack of direction for much of the session, stocks managed to end Thursday's trading mostly higher. While buying interest was somewhat subdued, the Dow and the S&P 500 still reached new record closing highs.

The major averages all finished the day in positive territory after closing mixed for three straight sessions. The Dow climbed 69.94 points or 0.4 percent to 17,554.47, the Nasdaq advanced 17.75 points or 0.4 percent to 4,638.47 and the S&P 500 rose 7.64 points or 0.4 percent to 2,031.21.

The higher close on Wall Street was partly due to the release of some upbeat U.S. economic data, including a report from the Labor Department showing a bigger than expected drop in initial jobless claims.

The Labor Department said initial jobless claims fell to 278,000 in the week ended November 1st, a decrease of 10,000 from the previous week's revised level of 288,000. Economists had expected jobless claims to edge down to 285,000.

A separate Labor Department report said labor productivity increased by more than expected in the third quarter amid another notable increase in output.

The markets also benefited from comments by European Central Bank President Mario Draghi, who indicated that the central bank is willing to provide additional stimulus.

"Should it become necessary to further address risks of too prolonged a period of low inflation, the Governing Council is unanimous in its commitment to using additional unconventional instruments within its mandate," Draghi said.

He added, "The Governing Council has tasked ECB staff and the relevant Eurosystem committees with ensuring the timely preparation of further measures to be implemented, if needed."

Nonetheless, traders seemed somewhat reluctant to make any significant moves ahead of the release of the Labor Department's closely watched monthly jobs report on Friday.

Economists expect the report to show an increase of about 240,000 jobs in October, while the unemployment rate is expected to hold at 5.9 percent.

Sector News

After falling sharply in recent sessions, gold stocks showed a substantial move back to the upside on the day. The NYSE Arca Gold Bugs Index surged up by 3.9 percent after ending the previous session at an eleven-year closing low.

The rebound by gold stocks came despite a modest decrease by the price of the precious metal, as gold for December delivery slid $3.10 to $1,142.60 an ounce.