Encouraging news from the job market pushed the stock market up early Thursday, putting the Standard & Poor's 500 index near its all-time high. The S&P 500 rose seven points to 1,561 -- just four points away from the high it hit in October 2007 -- before retreating marginally after 10 a.m.
The number of Americans filing new claims for unemployment benefits unexpectedly fell last week, the latest indication the labor market recovery was gaining traction.
U.S. employers ramped up hiring in February, adding 236,000 jobs and pushing the unemployment rate down to 7.7 percent from 7.9 percent in January. Stronger hiring shows businesses are confident about the economy, despite higher taxes and government spending cuts.
The number of Americans filing jobless claims fell more than expected last week, suggesting some traction in the labor market recovery. Initial claims for state unemployment benefits dropped 22,000 to a seasonally adjusted 344,000, the Labor Department said on Thursday.
Several Federal Reserve policymakers warned last month that the Fed's plan to keep buying $85 billion in bonds each month until the job market is healthy could eventually escalate inflation, unsettle financial markets or cost the Fed money when it sells its investments.
Payroll processor ADP says that employers added 192,000 jobs in January. That is more than December's revised number of 185,000, which had initially been reported at 215,000.
The number of Americans filing new claims for unemployment benefits fell to its lowest since the early days of the Great Recession, a hopeful sign for the sluggish labor market. Initial claims fell 5,000 to a seasonally adjusted 330,000.
The number of Americans filing new claims for unemployment benefits fell for a third straight week last week, but still remain too volatile to offer a clear signal on labor market conditions. Initial jobless claims dropped 25,000 to a seasonally adjusted 370,000.
The number of people seeking U.S. unemployment benefits fell sharply by 41,000 last week to a seasonally adjusted 410,000, though the figure was elevated for the second straight week by Superstorm Sandy. But employment should rebound after the impact of the storm passes.
Small business owners are getting a little more optimistic about how their companies will do after the election, according to a survey released Tuesday by the National Federation of Independent Business.
The U.S. economy grew at a 1.7 percent annual rate in the April-June quarter, boosted by slightly stronger consumer spending and greater imports. That was slightly better than the Commerce Department's initial estimate of 1.5 percent.
A gauge of future U.S. economic activity improved in July on a drop in new claims for jobless benefits and an increase in housing permits, although the reading still pointed to sluggish growth ahead.
U.S. factories made more cars, computers and airplanes last month, a hopeful sign that manufacturing is recovering after a weak spring. Industrial production increased 0.6 percent in July from June, the fourth straight monthly increase, the Fed reports.
On Monday, FedEx delivered some rough news to its employees: With profits down and cargo volume dropping, the company is going to tighten its belt and jettison some crewmen. Viewed in isolation, this might not seem like big news. But in context, it's a bad sign for for the U.S. economy.
U.S. companies got slightly more out of their workers this spring after scaling back on hiring. The modest 1.6 percent annualized gain in productivity from April through June signals employers may need to hire more if demand picks up.