(RTTNews) - Stocks are showing significant strength in mid-morning trading on Thursday, with upbeat jobs data leading traders to fund a rally in the stock market. The major averages are all in positive territory by substantial margins, looking to offset last week’s losses.

Ahead of the opening bell on Wall Street, the Labor Department released its report on initial jobless claims for the week ended October 31st, showing that first-time claims for unemployment benefits fell by more than economists had been anticipating.

Jobless claims fell to 512,000 from the previous week’s revised figure of 532,000. Economists had been expecting jobless claims to edge down to 522,000 from the 530,000 originally reported for the previous week.

With the bigger than expected decrease, jobless claims fell to their lowest level since claims came in at 488,000 in early January, the last time claims were below 500,000.

Separately, the Labor Department reported that labor productivity increased by much more than expected in the third quarter, with the report also showing a bigger than expected decrease in labor costs.

Retail sales figures have also garnered some attention, with a widely mixed batch of results from Saks (SKS), JC Penney (JCP), Target (TGT), American Eagle Outfitters (AEO), Aeropostale (ARO) and Gap (GPS) splitting the retail sector on the day.

On the earnings front, Cisco Systems (CSCO) reported first quarter adjusted net income of $0.36 per share compared to $0.42 per share a year ago, while sales for the quarter fell 12.7 percent to $9.0 billion. Analysts expected the company to earn $0.31 per share on sales of $8.74 billion.

The major averages have seen some further upside in recent trading, rising to new highs for the session. The Dow is currently up 180.85 at 9,982.99, the Nasdaq is up 44.96 at 2,100.48 and the S&P 500 is up 17.06 at 1,063.56.

Sector News

Housing stocks are posting some of the morning’s strongest gains, with the Philadelphia Housing Sector Index rising by 2.8 percent. With the gain, the index is moving further off the three-month closing low it set last Friday.

Shares of M/I Homes (MHO) are helping to boost the sector, surging up by 4.7 percent. The stock is moving further off the three-month closing low it set on Monday after reporting a narrower third quarter loss.

Electronic storage and semiconductor stocks are also on the rise, rebounding from recent lows. The NYSE Arca Disk Drive Index and the Philadelphia Semiconductor Index are up by 3 percent and 2.9 percent, respectively. The indices continue to move off their recent two-month lows.

Steel, defense, biotechnology, trucking, tobacco and healthcare related stocks are also seeing notable gains on the day, reflecting the day’s broad-based rally.

Stocks Driven By Analyst Comments

Shares of Bank of Ireland (IRE) are moving considerably higher in mid-morning trading after being upgraded by UBS from Sell to Neutral. The stock is up by 8.3 percent, continuing to recover from Tuesday’s three and a half month closing low.

Palm Inc. (PALM) is also on the rise after being upgraded by Barclays Capital to Equal Weight from Underweight. The stock has advanced by 5.6 percent, bouncing off of Wednesday’s five-month closing low.

On the other hand, Molson Coors (TAP) is sliding following a downgrade by Goldman Sachs, which lowered its rating on the stock to Neutral from Buy based on valuation. Shares are down by 2.6 percent, setting a three-month intraday low earlier in the session.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region closed mostly lower on Thursday. Japan’s benchmark Nikkei 225 Index fell by 1.3 percent, while Hong Kong’s Hang Seng Index fell 0.6 percent.

Meanwhile, the major European markets have turned higher over the course of the trading day. The French CAC 40 Index is surging up by 1 percent, while the German DAX Index and the U.K.’s FTSE 100 are up by 0.6 percent and 0.5 percent, respectively.

In the bond markets, treasuries are showing a lack of conviction. Subsequently, the benchmark ten-year yield is sitting at 3.539 percent, essentially unchanged on the session.

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Posted in Categories: Economy, Eurozone, Japan, Releases, USA.

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