New York: The S&P 500 closed above 1,400 for the first time since the 2008 financial crisis on Thursday as stocks resumed the upward climb that has produced a steady stream of gains this year.
The benchmark index is up for six of the past seven sessions and is on target for its best week since early February. Financial stocks, which have dragged lately, led the day with the S&P sector index up 1.9 per cent as another round of better-than-expected economic data bolstered investors' enthusiasm.
"The data is lifting us today, but so is the momentum of the market," said Rex Macey, chief investment officer at Wilmington Trust in Atlanta, Georgia, which manages about $60 billion.
"People are getting more comfortable with the S&P above 1,400 and financials leading, which by itself is indicative of a sigh of relief. The trend is your friend, and lately the trend has been higher."
Though 1,400, which marks the highest level for the index since June 2008, does not have much technical importance, it is viewed as a bullish psychological marker.
Some investors have called for a pullback, given the 11 per cent rise in the S&P 500 since the start of the year. However, interruptions in the rally have been brief, lasting only a couple of days at the most.
Apple Inc pulled back 0.7 per cent to $585.56 at the close, ending a six-day streak of gains, though it hit a new all-time high at $600.01 in early trading. Some analysts have predicted the stock will move to $700 within 12 months.
New claims for US unemployment benefits unexpectedly fell back to a four-year low last week, another sign of improving labor market conditions, while producer prices, excluding food and energy, were contained.
Manufacturing data in New York and the U.S. mid-Atlantic region also improved, according to regional Federal Reserve surveys.
The Dow Jones industrial average rose 58.66 points, or 0.44 per cent, to 13,252.76, closing out a seventh straight day of gains. The Standard & Poor's 500 Index advanced 8.32 points, or 0.60 per cent, to 1,402.60 at the close. The Nasdaq Composite Index gained 15.64 points, or 0.51 per cent, to 3,056.37.
Trading was also volatile at the start of "quadruple witching," the dates of expiration and settlement of four types of equity futures and options contracts.
Helping transport stocks but hurting energy companies was Britain's decision to cooperate with the United States in a bilateral agreement to release strategic oil stocks in an effort to prevent high fuel prices derailing economic growth in a US election year, according to two British sources.
Brent crude futures fell 1.1 per cent. The Dow Jones Transportation Average rose 3.3 per cent, while the S&P energy index added 0.1 per cent.
Cisco Systems Inc fell 1.4 per cent to $19.91 after it agreed to buy NDS for $5 billion, the Dow component's first major acquisition in over two years.
Semiconductors moved higher, led by Advanced Micro Devices Inc, which jumped 6.3 per cent to $8.25 after Jefferies upgraded the stock to "buy." The Philadelphia Semiconductor Index gained 2 per cent.
Ross Stores Inc reported a higher profit for the holiday quarter as shoppers sought out popular clothing brands at discount prices, and the off-price chain forecast "respectable" sales and profit gains for this fiscal year. Shares dropped 0.4 per cent to $56.35. The Morgan Stanley retail index rose 0.8 per cent.
Three initial public offerings made their debuts on Thursday: cloud computing-based software company Demandware Inc, analog chipmaker M/A-Com Technology Solutions Holdings and Allison Transmission Holdings.
Demandware surged 47.4 per cent to $23.59, M/A-Com advanced 8.2 per cent to $20.55 and Allison Transmission rose 1.7 per cent to $23.40.
About 58 per cent of stocks traded on the New York Stock Exchange closed in positive territory, while on the Nasdaq, 64 per cent of issues closed higher.
About 7.05 billion shares traded on the New York Stock Exchange, the NYSE Amex and the Nasdaq, below last year's daily average of 7.84 billion.
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