US open: US stocks advance amid encouraging retail sales and lower jobless claims

US stock indices advanced on Thursday, as the nation’s retail sales in November were higher than expected and initial jobless claims showcased the lowest level in three weeks.

At the start of trading, the Dow Jones Industrials rose 0.95% to 17,697.25, while the S&P 500 increased 0.8% to 2,046.08 and Nasdaq was up 1.07% to 4,270.62.

Retail sales performed well above its 0.4% forecast for the month of November, rising 0.7% following higher demand in autos and clothing. Auto sales experienced particularly strong results, increasing 1.7%.

Chief economist for Markit Chris Wlliamson said: “The upturn in sales supports survey evidence that the economy’s recent growth surge is showing few signs of stalling, despite a gloomier-looking global economy.

“Spending is being driven by an improved labour market, with rising employment helping to bring down the jobless rate and boosting incomes.”

Moreover, the US also reported its lowest initial jobless claim index in three weeks on Thursday, echoing the nation’s falling unemployment rate. In total, demand for regular state unemployment-insurance benefits inched down 3,000 to 294,000 in the week ended 6 December. Economists had expected initial claims to experience only a 1,000 drop to 296,000.

Analyst for Daiwa Capital Markets America Michael Morton, said: “The results left little doubt that job growth is now moving along a firm track. November marked the 10th consecutive month of job growth in excess of 200,000 with the average increase over this span totalling 250,000.”

Following encouraging consumer data and higher retail sales, apparel sector peers Urban Outfitter Inc., Coach Inc. and Ross Stores Inc. were among the best performers in early trading on Thursday. Shares in Urban Outfitters alone sky rocketed more than 10% following the announcement of an upbeat outlook on sales for the current quarter.

Shares in Staples also showed robust price growth in morning trading, after Starboard Value LP confirmed its purchase of a 6% stake in the office supply retailer.

Meanwhile, used car retailer Carmax inched up 2.68% on the back of encouraging auto sales data for November.