S&P 500 at five-year high with boost from data, eBay
By Caroline Valetkevitch | January 18, 2013 7:35 AM EST
Stocks climbed on Thursday, with the S&P 500 advancing to a five-year intraday high on signs of strength in the housing and job markets and on better-than-expected results from online marketplace eBay
The number of Americans filing new claims for unemployment benefits fell to a five-year low last week and housing starts jumped last month to the highest since June 2008.
Strength in the housing and labor markets is key to sustained growth and higher corporate profits. Job market improvement helps stimulate consumer spending while a recovery in housing means more purchases of appliances, furniture and other household goods as well as a source of employment.
The S&P is on track for its third consecutive advance, which pushed the index above an intraday peak set in September to its highest since December 2007. The PHLX semiconductor index <.SOX>, up 1.7 percent, reached its highest level in eight months.
"Having consolidated really for the last two weeks, the fact that we broke out, I think that that's sucking in quite a bit of money," said James Dailey, portfolio manager of TEAM Asset Strategy Fund in Harrisburg, Pennsylvania.
In the housing sector, PulteGroup Inc
The Dow Jones industrial average <.DJI> was up 110.01 points, or 0.81 percent, at 13,621.24. The Standard & Poor's 500 Index <.SPX> was up 10.96 points, or 0.74 percent, at 1,483.59. The Nasdaq Composite Index <.IXIC> was up 22.52 points, or 0.72 percent, at 3,140.07.
EBay's shares rose 2.7 percent to $54.33 a day after it reported holiday quarter results that just beat Wall Street expectations. It gave a 2013 forecast that was within analysts' estimates.
The S&P financial sector index <.SPSY> slipped 0.14 percent as the only one of the 10 major S&P sectors to decline.
S&P 500 earnings are expected to have risen 2.3 percent in the fourth quarter, Thomson Reuters data showed. Expectations for the quarter have fallen considerably since October when a 9.9 percent gain was estimated.
(Additional reporting by Chuck Mikolajczak; Editing by Kenneth Barry and Nick Zieminski)