US stocks gain on data

Stocks rose on Thursday as stronger-than-expected economic data lifted sentiment in a lightly traded session, although weakness in Amazon kept a lid on Nasdaq gains.Reuters reported that the S&P 500 was again slightly higher for the year a day after concerns about Europes debt crisis sparked a selloff that took the index into negative territory for 2011. While Italys bond yields remaining at high levels after an auction, they were overshadowed by the positive domestic data.Pending sales of existing homes surged to a 1-1/2 year high in November, offering more signs of a tentative housing recovery. The Dow Jones Home Construction index rose by 3.3 per cent, while Toll Brothers Incorporated gained 2.8 per cent to $20.40.In addition, the Institute for Supply Management-Chicagos index of Midwest business activity was higher than expected in December, though it edged lower from the previous month.Italian yields fell from recent record highs at a short-term debt auction, but yields for 10-year paper remained near seven per cent, a level near where other euro zone governments were forced to seek bailouts."The improvement in yields wasnt as much as wed like, but it is modestly reassuring," A portfolio manager at Chase Investment Counsel in Charlottesville, Virginia, Mr. Brian Lazorishak, said."Also, the data continues to be steps in the right direction, showing some signs of healing in the economy."The Dow Jones industrial average jumped by 99.94 points, or 0.82 per cent, at 12,251.35. The Standard & Poors 500 Index was up by 10.13 points, or 0.81 per cent, at 1,259.77. The Nasdaq Composite Index .IXIC advanced 13.51 points, or 0.52 per cent, at 2,603.49.Initial jobless claims rose more than expected, giving a mixed picture on the labor market.Recent economic data, including reports on the housing market, have been largely positive, contributing to gains over the past month and the view that economic growth is picking up steam.For the year, the S&P is flat, while the Nasdaq is down by 1.9 per cent. The Dow is up 5.7 per cent.Gains in the Nasdaq were limited by Amazon.com Incorporated, which fell 1.9 per cent to $170.63. Goldman Sachs late Wednesday, suggested the online retailers sales growth in the current holiday quarter could miss Wall Street expectations.
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