U.S. Stocks Higher Amid Low Jobless Claims

U.S. Markets
Jobless claims fell by 10,000 to a seasonally adjusted 258,000 in early December. These claims are a proxy for layoffs across the United States and are used to gauge the strength of the job market. Fewer people filing for unemployment benefits means more have jobs. Jobs give households spending power, which helps the economy grow. However, the low level of unemployment claims might make it tough for businesses to find new workers. They might have to pay overtime wages to current employees or pay higher wages to attract people from other jobs. Having to spend more on labor costs leads to wage inflation, which isn't good for bond and stock markets. This was the 92nd-straight week that claims were below 300,000, a threshold associated with a robust labor market. This was the last significant reading on jobs before the Federal Reserve's interest-rate decision on Wednesday.

The Nasdaq was up 0.26% and hit an all-time intraday trading high of 5407.02. The Dow was down 0.05%. The S&P 500 was down 0.03% after opening the day in the green. Eight of the S&P 500's 11 sectors were trading in negative territory. The utilities and real estate sectors were the worst performers as news came in that rates for home loans increased for the sixth consecutive week.

Stocks on the Move
Shares of Canadian athletic apparel retailer Lululemon Athletica (LULU) jumped after the company reported third-quarter earnings that were stronger than analysts expected. Lululemon stocks have gained about 14% this year as the company continues to benefit from strong demand for its leggings. The company said its net revenue rose by 13% to $544.4 million.

Sears Holdings' (SHLD) revenue declined about 13% to $5.03 billion. The department store chain posted a net loss of $748 million during the third quarter. The beleaguered company has only reported two profitable quarters since April 2012 and has been selling off stores and assets in search of profitability. The company continues to operate 702 Sears stores and 801 Kmart stores. Shares of the company were down 1.82% on Thursday.

Foreign Markets
European stocks gained as the European Central Bank extended its quantitative easing program for another nine months. Current asset purchases of about EUR 80 billion a month will be extended until December 2017, but will be cut to EUR 60 billion a month starting in April 2017. Eurozone bond prices fell after the central bank's announcement. The euro surged immediately following the announcement, hitting a one-month high against the U.S. dollar before dropping back below $1.08. The CAC 40 Index gained 0.74%. The DAX was up 1.39%, and the FTSE 100 was up 0.25%. The Stoxx 600 had gained 0.95% as all European indexes were set to end the day in the green.

Asian equity markets gained on Thursday as president-elect Donald Trump tapped 70-year-old Iowa governor Terry Branstad to become the next U.S. ambassador to China. The Nikkei hit a new 2016 high as it gained 1.45%. The Hang Seng closed with a 0.27% gain, and the Asia Dow gained 1.23%. The Sensex was up 1.74%.