Surprise EconomistsMarkets gain after jobless claims, leading indicators and Philly Fed surprise economists.
Last Updated: June 18, 2009: 10:46 AM ET
NEW YORK (CNNMoney.com) -- Stocks turned higher Thursday after readings on jobless claims, manufacturing and leading economic indicators all showed improvement beyond analysts' forecasts.
Reports on Thursday helped reassure investors, bringing buyers in who scooped up select bank and commodity issues. However, weakness in technology kept the Nasdaq out of the loop.
The Nasdaq managed gains Wednesday, but the Dow and S&P slipped after S%P cut the credit ratings on 22 banks and President Obama announced a major overhaul of the financial regulatory system.
Economy: The number of Americans filing new claims for unemployment rose slightly last week to 608,000 from a revised 605,000 in the prior week, the Labor Department reported. Economists expected 604,000 claims, according to a Briefing.com survey.
But continuing claims slumped for the first time since the week ended Jan. 3. Continuing claims refer to people who have been collecting claims for a week or more.
The Philadelphia Fed index, a reading on regional manufacturing, improved to negative 2.2 from negative 22.6 last month. Economists expected a reading of negative 17.
An index of leading economic indicators (LEI) rose 1.2% in May, the Conference Board reported. LEI stood at 1.1% in April and was expected to decline to 1%.
Bonds: Treasury prices tumbled, raising the yield on the benchmark 10-year note to 3.72% from 3.69% Wednesday. Treasury prices and yields move in opposite directions.