By Victor Reklaitis, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks climbed Thursday,
finishing at records after the European Central Bank unveiled a
raft of stimulus measures.
The ECB announced a negative rate on reserves that banks park at
the central bank, in a widely expected move, but it also revealed
several other measures aimed at boosting inflation and encouraging
lending in the euro zone.
In U.S. economic news, a report on weekly jobless claims roughly
matched forecasts.
The S&P 500(SPX) rose 12.58 points, or nearly 0.7%, to end
at 1,940.46, shaking off a mid-morning decline. The benchmark
scored an all-time closing high for the 17th time this year, after
nabbing its 16th record close on Wednesday.
The Dow Jones Industrial Average(DJI) gained 98.58 points, or
0.6%, to finish at 16,836.11. The blue-chip index also achieved a
record close, and both the Dow and S&P 500 had their biggest
gains since May 21 -- more than two weeks ago.
The tech-heavy Nasdaq Composite(RIXF) advanced by 44.58 points,
or nearly 1.1%, to end at 4,296.23, closing at levels last seen in
late March.
The small-cap Russell 2000(RUT) climbed 22.72 points, or 2%, to
finish at 1,153.94, ending at levels last seen in late April.
The ECB cut its deposit facility to negative 0.10% from 0% and
dropped its main lending rate to 0.15% from 0.25%. The central bank
also announced preparations toward the purchase of asset-backed
securities. The Stoxx Europe 600 closed up 0.4%. (Read more: Few
expected ECB to try so many measures all at once
http://www.marketwatch.com/story/draghi-brings-out-everything-but-the-ecb-bazooka-2014-06-05.)
"The package is immediately significant," said Citi Private Bank
strategists in a note Thursday.
In the U.S., weekly jobless claims rose to 312,000, essentially
in line with expectations of 311,000.
On Friday, investors will get the U.S. government's May jobs
report. Economists are expecting a rise of 210,000 jobs in May, but
there is a little trepidation after private-sector payrolls
disappointed on Wednesday, showing the slowest pace of jobs growth
in four months. (Read more: What to look for in May jobs report
http://www.marketwatch.com/story/what-to-look-for-in-may-jobs-report-2014-06-05.)
Some strategists remain upbeat as U.S. stocks keep climbing.
"The uptrend still has the support of positive short-term
momentum, although a pullback still appears likely in the days
ahead," said Katie Stockton, BTIG's chief technical strategist, in
emailed comments on Thursday. "We believe any weakness should be
viewed as an opportunity to accumulate stocks, given widespread
breakouts and healthy global breadth."
Hedge-fund manager David Tepper, who sounded notably cautious
last month, told CNBC Thursday that the ECB has helped soothe his
biggest market worries.
Stock bulls also have gotten another boost from S&P Capital
IQ. The research firm's Investment Policy Committee -- which has
been upbeat on U.S. stocks -- raised its 12-month target for the
S&P 500 to 2,100 late Wednesday, up 9% from its prior target of
1,985. (Read more: Get your money ready for a big S&P 500 rally
http://blogs.marketwatch.com/thetell/2014/06/04/get-your-money-ready-for-a-big-sp-500-rally/?link=instory.)
Among individual stocks, Sprint Corp. (S) closed down 4% on news
the wireless carrier is nearing a deal to buy rival T-Mobile US
Inc. (TMUS) for $40 a share. T-Mobile dropped 2.3%. (Read more in
MarketWatch's Movers & Shakers column
http://www.marketwatch.com/story/ciena-corp-jumps-on-earnings-pvh-sinks-2014-06-05.)
Joy Global Inc.(JOY) fared best among S&P 500 stocks, rising
6.7% after its quarterly earnings topped expectations. PVH
Corp.(PVH) performed worst, losing 8.1% after it warned of pressure
on its profit margins.
In other markets, August gold (GCQ4) gained ground, while Asian
equities finished largely flat, outside of a 0.8% rise for the
Shanghai Composite .
More must-reads from MarketWatch:
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