UKX FTSE 100 Index

By Anora Mahmudova and Wallace Witkowski, MarketWatch

U.S. stocks motor to records, propelled by sharp gains in crude

The three main stock-market indexes rang up record highs Thursday as better-than-expected economic data and a rebound in oil prices boosted Wall Street sentiment.

The S&P 500 index rose 10.30 points, or 0.5%, to close at 2,185.79, topping the previous all-time closing high of 2,182.87 set Aug. 5. Energy shares led the gains with a 1.3% jump, while consumer-discretionary stocks advanced 1%, thanks in part to a big jump in shares of Macy's Inc.(M) and Kohl's Corp.(KSS) following earnings.

The Dow Jones Industrial Average rallied 117.86 points, or 0.7%, to close at 18,613.52, topping its previous closing record of 18,595.03 set July 20. The average was led by a 2.9% jump in Nike Inc.(NKE) shares.

The Nasdaq Composite Index gained 23.81 points, or 0.5%, to finish at 5,228.40, surpassing its previous record of 5,225.48 set on Tuesday.

It was the first day the three major stock-market indexes finished at records on the same day since Dec. 31 1999, according to Dow Jones data.

Still, Thursday's stock-market rise to fresh records may reinforce the view that equity valuations are inflated, as central banks maintain accommodative monetary policies around the world, and as earnings have been weak on a year-over-year basis.

"In the short-term, there is elevated risk downside due to high valuations, especially if earnings in the second half of the year do not rebound. But there is still some momentum chasing among investors that has driven markets to records recently," Sturkenboom said.

The gains were supported by weekly jobless claims, which pointed to continued low levels of layoffs, while both import and export prices inched up despite a decline in fuel costs, suggesting a possible pick up in inflation. The Federal Reserve has been looking at a return of healthy levels of inflation--but low crude-oil costs have stymied that--to determine when to raise interest rates.

Oil: "There is not much news that markets can react to at the moment, so investors are responding to volatility in oil prices, especially in light of the earnings season that showed energy companies still struggling," said Wouter Sturkenboom, senior investment strategist at Russell Investments.

Crude-oil prices bounced from a sharp drop on Wednesday (http://www.marketwatch.com/story/oil-extends-losses-after-us-stockpile-growth-record-saudi-output-2016-08-11) and settled up 4.3% at $43.49 Thursday, as talk of a possibly output freeze gains traction. Prices had been choppy as the International Energy Agency cut its forecast for global oil demand next year, citing a dimmer economic outlook. The agency also warned in its monthly report that a "massive" stock overhang (http://www.marketwatch.com/story/iea-massive-stock-overhang-is-capping-oil-price-2016-08-11) is keeping a lid on oil prices.

Economic news: Weekly jobless claims ticked down to 266,000, staying below the 300,000 layoff level for 75 weeks in a row.

The import-price index for July rose 0.1%, while export prices ticked up 0.2%.

There are no Fed speakers this week. The next big event for the central bank will be Chairwoman Janet Yellen's appearance at the Jackson Hole, Wyo., conference on Aug. 26.

See:

Movers and shakers:Kohl's Corp. (KSS) rallied to close up 16% and while Alibaba Group Holding Ltd. (BABA) gained 5.1% after both companies reported earnings that topped estimates.

Shares of Valeant Pharmaceuticals International Inc.(VRX.T) tumbled 10% after news of a federal investigation (http://www.marketwatch.com/story/valeant-under-criminal-probe-to-see-if-insurers-were-defrauded-2016-08-10) into whether the drugmaker defrauded insurers.

Shares of Kura Oncology Inc.(KURA) surged 20% after the biotech company late Wednesday said a phase 2 trial for one of its cancer drugs was showing "promising" results (http://www.marketwatch.com/story/kura-oncology-reports-second-quarter-2016-financial-results-2016-08-10-16184336).

Shake Shack Inc.(SHAK) tanked 6.2% after the burger chain late Wednesday posted weak sales growth in the second quarter (http://www.marketwatch.com/story/shake-shack-drops-on-weak-same-store-sales-growth-2016-08-10).

Blue Buffalo Pet Products Inc.(BUFF) shares fell 4.3% even after the company late Wednesday raised its outlook for the year as second-quarter results beat expectations (http://www.marketwatch.com/story/blue-buffalo-raises-outlook-as-results-top-targets-2016-08-10).

Macy's Inc.(M) shares jumped to close 17% higher after it reported better-than-expected earnings (http://www.marketwatch.com/story/macys-shares-spike-after-earnings-beat-estimates-100-store-closures-announced-2016-08-11)and announced the planned closure of 100 retail sites. On the heels of Macy's, shares of Nordstrom Inc.(JWN) closed up 7.5% ahead of its earnings, while shares of Ralph Lauren Corp.(RL) and PVH Corp.(PVH) both closed up 5%.

Amazon Inc.(AMZN) shares touched a new all-time high of $773.75 Thursday, and closed up 0.4% at $771.24 in the online retailer's steady climb higher (http://www.marketwatch.com/story/7-reasons-amazon-stock-will-only-go-higher-2016-08-11).

Allergan PLC(AGN) plans on purchasing (http://www.marketwatch.com/story/allergan-agrees-to-buy-private-biotech-forsight-vision5-for-95-mln-2016-08-11) privately held eyecare-technology company ForSight VISIONS for $95 million. Shares rose 0.3%.

A. Schulman Inc.(SHLM) shares plunged 27% after the plastics marker issued a profit warning on Thursday, citing deteriorating market conditions.

Other markets: Asian markets closed mixed (http://www.marketwatch.com/story/asian-markets-dip-as-oil-prices-slump-2016-08-10), with stocks in Shanghai ending lower, but the Hang Seng Index in Hong Kong closed higher.

European markets (http://www.marketwatch.com/story/european-stocks-edge-lower-as-oil-shares-slide-2016-08-11) trended higher. The U.K.'s FTSE 100 index (http://www.marketwatch.com/story/ftse-100-loses-ground-as-home-builder-shares-drop-oil-prices-slide-2016-08-11) gained 0.2%, even as the benchmark's commodity majors dragged it lower. Sentiment was also hit by concerns over the Bank of England's failed bond purchases (http://www.marketwatch.com/story/failed-boe-bond-purchase-puts-another-crack-in-image-of-central-banks-2016-08-10), which sent shorter-dated gilt yields into negative on Wednesday.

The dollar rose against most other major currencies (http://www.marketwatch.com/story/dollar-steadies-new-zealand-dollar-rises-after-interest-rate-cut-2016-08-11), pressuring gold which settled down 0.1% at $1,350 an ounce.

--Sara Sjolin in London contributed to this article.

(END) Dow Jones Newswires

August 11, 2016 16:38 ET (20:38 GMT)

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