• Durables Endure: Labor Department reports November uptick.
• Fat Freddie: Bonus plans announced for Fannie Mae and Freddie Mac.
• Oil Boil: Crude futures hold gains above $77 a barrel.

The Lowdown

Stocks hit record closes Thursday morning in a Santa Claus rally after reports showed weekly jobless claims fell more than expected, though durable goods orders rose less than economists had predicted.

The Dow Jones Industrial Average closed at its highest level since Oct. 1, 2008, rising 54 to 10520. The Nasdaq hit a 2009 high, climbing 16 to 2286. The S&P 500 also reached a high from ct. 1, 2008, picking up 6 to close at 1126.

The Labor Department said initial claims for jobless benefits dropped by 28,000 to a seasonally adjusted 452,000 in the week ended Dec. 19, from an unrevised 480,000 the previous week. Economists surveyed by Dow Jones Newswires had expected claims would fall by just 10,000 to 470,000. The last time initial claims were lower was the week of Sept. 6, 2008, when they stood at 447,000.

In a separate report, the Commerce Department said orders for durable goods rose in November, but less than what economists had expected. Manufacturers' orders for the long-lasting goods increased 0.2% to a seasonally adjusted $166.87 billion. Economists had projected a 0.4% gain.

In other markets, the dollar slipped slightly against both the euro and the yen. Gold futures were up and Treasurys climbed.

As of 1:03 p.m., crude oil futures traded on the Nymex were up 70 cents at $77.37 a barrel.

U.S. financial markets closed at 1 p.m. EST for Christmas Eve and will remain closed Friday for Christmas.

Dow Jones Newswires contributed to this report.