Stocks Surge Late, Dow Tops 10,000 Anew

Stocks got a strong start and did not waver on their upward march Thursday as jobless claim numbers neared a 2009 low, though unemployment numbers released tomorrow could take the sheen off the upbeat data.

The Dow Jones Industrial Average rose 204 points to 10006, its first close above 10,000 since Oct. 22, a 2.1% jump. The Nasdaq rose 50 to 2105, and the S&P 500 climbed 20 to 1067.

The Labor Department reported that the number of U.S. workers filing new claims for jobless benefits declined more than economists expected last week, while total claims lasting more than one week also decreased.

Initial claims for jobless benefits, which decreased by 20,000 to 512,000 in the week ended Oct. 31, hit their lowest level since Jan. 3. The previous week's level was revised to 532,000.

Still, there was some concern among traders as U.S. productivity grew during the third quarter by the most in six years, a sign that employers continue to fire workers to save money.

Coupled together, the reports were partly a mixed bag ahead of Friday's heavily watched October nonfarm payrolls report.

A day after the Federal Reserve chose to keep its key benchmark interest rate unchanged and signaled rates would be low for a significant period of time, financials will likely remain in focus in the early going. Prior to the release of jobless claims, stocks had been helped slightly by Cisco Systems' (CSCO) better-than-expected third-quarter report and a stock buyback by Research In Motion (RIMM).

Overseas, Asian markets finished down. European stocks were up slightly.

As of 2:47 p.m., crude oil futures were down slightly, Front-month futures contracts traded on the Nymex dropped 53 cents to $79.87.

Dow Jones Newswires contributed to this report.