Thursday, November 5, 2009

A drop in unemployment claims and an upbeat forecast from Cisco Systems Inc. is giving investors new reason to be optimistic about the economy.

Stocks ended sharply higher Thursday following a Labor Department report that the number of newly laid-off workers seeking unemployment benefits fell to 512,000 last week. That's the lowest level since January.

The biggest jump in productivity in six years is fanning hopes for higher corporate profits.

The Dow Jones industrials are up 204 at 10,006. The Standard & Poor's 500 index is up 20 at 1,067, while the Nasdaq composite index is up 50 at 2,105.
Four stocks rose for every one that fell on the New York Stock Exchange. Volume was 1.3 billion shares compared with 1.4 billion Wednesday.

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Encouraging news on jobs and worker productivity is giving investors new reason to be optimistic about the economy.

Stocks are sharply higher at midday Thursday as the Labor Department says the number of newly laid-off workers seeking unemployment benefits fell to 512,000 last week. That's the lowest level since January and comes a day ahead of the government's closely watched monthly jobs report.

The biggest jump in productivity in six years is fanning hopes that lower costs will boost corporate profits. The government says productivity jumped 9.5 percent in the third quarter.

The Dow Jones industrials are up 167 at 9,969. The Standard & Poor's 500 index is up 15 at 1,061. The Nasdaq composite index is up 41 at 2,097.