The US ascended on Thursday, following a set of economic figures led to an improving economy and investors reevaluated Federal Reserve Chair Janet Yellen's statements which ignited speculation of an earlier than hoped rate increase by the central bank.
After several weeks of mild economic data accredited by many investors to severe winter weather conditions, labor market data on Thursday reflected the number of Americans filing for jobless benefits drifted close to three-month lows last week. A document from the Federal Reserve Bank of Philadelphia displayed the factory activity in the Mid-Atlantic region came back in March, implying economic momentum might be increasing.
Financial shares, which are bounded to the pace of economic development, were among Thursday's largest gainers, as the S&P financial sector index surged up 1.7%. Following the close, the Federal Reserve said 29 out of 30 major banks complied the minimum shackles in its annual health check.
JPMorgan Chase & Co. increased 3.1% to $60.11, above $60 for the first time since April 2000. Citigroup Inc gained 2.6% to $50.22.
In her first press conference as Fed Chair, Yellen pointed the first hike in interest rates could happen in the first half of next year. She figured the sizable period between the end of the Fed's stimulus and its first rate increase at possibly six months. Analysts widely anticipated the increase in the second half of 2015.
The Dow Jones industrial average advanced 108.88 points or 0.67%, to close at 16,331.05. The S&P 500 added 11.24 points or 0.60%, to end at 1,872.01. The Nasdaq Composite gained 11.684 points or 0.27%, to finish at 4,319.286.
The S&P 500 is approximately 6 points away from its record closing high, but volume has been weakening on optimistic market days, suggesting restrained conviction behind the decision. Volume is anticipated to move on Friday as options expire along with multiple index rebalances. Credit Suisse estimated $14 billion in gross trading will come from the S&P 500 index rebalance, with another $6 billion coming from rebalancing in other indexes.
Geopolitical anxieties continued to be watched as Russian troops captured two Ukrainian naval bases, including a headquarters in the Crimean port of Sevastopol. President Barack Obama declared sanctions on Thursday versus pronounced Russians, including close allies of President Vladimir Putin, as Moscow breezed to finish its annexation of Crimea and established its forces in the region.
In turn, Russia imposed retaliatory sanctions on nine US officials and lawmakers, cautioning the West it would hit back over every aggressive thrust. While few US firms have outsized exposure to the region, investors are worried on the outcome from any escalation in tension.
Lennar Corp. listed a sharp leap in its 1st quarter profit, which was supported by higher prices. The results came a day following KB Home posted same sturdy results in a bullish read on the housing market. Housing figures also showed US existing home sales at a 19-month low in February.
Lennar's shares dropped 2.5% to $40.32 and KB Home erased 2.7% to $18.21. The PHLX housing sector index missed 1.2%.
Jabil Circuit Inc. predicted 2015 core earnings over Wall Street's estimations as the struggling contract electronics maker expects to recoup from the loss of its business with BlackBerry Ltd. Jabil Circuit's stock slipped 2.8% to $17.74.
On the other hand, the Nasdaq's profits were restricted by weakness in large-cap internet shares. Amazon.com Inc. dived 1.1% to $368.97 while Facebook Inc. dipped 1.9% to $66.97.
Volume was light, with around 5.9 billion shares listed on US exchanges, was below the 6.7 billion average so far this month, based on the BATS Global Markets data. Declining stocks surpassed advancing ones on the New York Stock Exchange by 1,547 to 1,468. On the Nasdaq, the stretch was affirmative, with advancers outmatching decliners by 1,384 to 1,229.
