Stocks Jumped at Open after Upbeat Jobless Claims Data

U.S. stocks jumped at open on Thursday, after new economic data showed a bigger dip in new unemployment claims than expected. The Dow Jones Industrial Average lately rose 262.83 points, or 0.87%, to 30,566.00. The S&P 500 gained 32.14 points, or 0.86%, to 3,782.91. The Nasdaq Composite added 86.67 points, or 0.65%, to 13,357.30.

Oil futures were slightly lower Thursday, under pressure as traders monitored slowing travel activity in China amid new COVID-19 infections and unease over the pace of vaccine rollouts in Europe which are weighing on energy demand. West Texas Intermediate crude for March delivery fell 19 cents, or 0.4%, to $52.66 a barrel. March Brent crude was down 9 cents, or 0.2%, at a $55.72 a barrel.

Weekly unemployment claims pulled back by 67,000 from the prior week’s elevated levels, dipping below 900,000 for the first time in three weeks. Initial jobless claims filed traditionally through the states fell by 67,000 to a seasonally adjusted 847,000 in the seven days ended Jan. 23, the government said Thursday.

U.S. gross domestic product (GDP) grew for a second straight quarter in the final three months of 2020, albeit with slowing momentum heading into the new year, largely as a result of weakening consumer spending. The U.S. grew at a modest 4% annual pace in the final three months of 2020. Consumer spending rose at a 2.5% annual clip in the final three months of the year.