Pending Home Sales Smash Expectations As Jobless Claims, Consumer Spending Also Lift Dow & S&P

Category: Economy / Jun 27, 2013 10:17AM EDT

U.S. stocks rose at the open on Thursday after data revealed fewer Americans filed claims for unemployment benefits last week, and consumer spending rebounded in May.

Initial claims for unemployment benefits fell 9,000 to a seasonally adjusted 346,000, ​the Labor Department said Thursday. In addition, the four-week moving average for new claims fell 2,750 to 345,750. Additional data showed consumer spending increased 0.3 percent last month after a revised 0.3 percent drop in April, the Commerce Department said.

Economists on Thursday will also be watching pending home sales for May and speeches from Fed officials, including New York Fed President William Dudley who will speak just after Wall Street opens.

The National Association of Realtors said on Thursday its Pending Home Sales Index increased 6.7 percent to 112.3, the highest level since December 2006.

On the economic calendar for Friday, economists will be eyeing Chicago PMI and consumer sentiment.

As of 10:11am Eastern, the Dow Jones industrial average .DJIA jumped 124.13, or 0.83 percent, to 15,034.27. The S&P 500 .SPX rose 12.08 points, or 0.76 percent, to 1,615.41.