Encouraging news about the U.S. labor market helped lift stocks in midday trading Wednesday, steering the Dow Jones industrial average and the Standard & Poor's 500 index toward new highs. Utilities stocks were among the biggest gainers, while energy stocks slumped as oil prices slid. Trading will close early Wednesday ahead of the Christmas holiday.
KEEPING SCORE: The Dow Jones industrial average rose 54 points, or 0.3 percent, to 18,079 as of 12:03 p.m. Eastern time. The Standard & Poor's 500 gained four points, or 0.2 percent, to 2,086. The Nasdaq composite added 18 points, or 0.4 percent, to 4,783. Trading will close at 1:00 p.m. Eastern.
WEEK OF MILESTONES: The Dow and the S&P 500 notched all-time highs the first two days of the week. The indexes finished higher in the five trading days through Tuesday, recovering the last of the ground they lost in an early-December slump.
UNEMPLOYMENT BENEFITS: The Labor Department reported that the number of Americans applying for unemployment benefits dropped last week to 280,000. That's the lowest level in seven weeks and the latest sign that the U.S. economy and job market are steadily improving. In the first 11 months of this year, employers have added 2.65 million jobs. That already makes 2014 the best year for hiring since 1999. The report comes a day after the Commerce Department said that the economy grew at an annual rate of 5.5 percent in the July-September quarter, the fastest pace in 11 years.
THE QUOTE: The unemployment benefits data show steady improvement in the labor market, which is positive news for the economy, noted Chris Gaffney, a senior market strategist at EverBank Wealth Management.
"But we're still giddy after yesterday's GDP (report)," he said. "That's what's mainly driving this market."
SECTOR WATCH: Seven of the 10 sectors in the S&P 500 rose, led by utilities stocks, which are up 26.2 percent this year. Investors often turn to utilities as a safe haven during periods of market volatility.
"Possibly, people just want to get a bit more defensive in respect to their gains going into the end of the year," Gaffney said.
PHARMA REBOUND: A day after posting steep declines, several drugmakers were trading higher Tuesday. Celgene led the pack, adding $4.60, or 4.3 percent, to $110.7, while Gilead Sciences rose $2.33, or 2.6 percent, to $91.78. Amgen gained $3.63, or 2.3 percent, to $161.15.
NO SPARK: The energy sector was the biggest decliner in the S&P 500. That sector has fallen 9 percent this year as the slide in oil prices has deepened. Among stocks in the S&P 500, oil drilling services company Noble Corp. fell the most, sliding 70 cents, or 4 percent, to $16.91.
OVERSEAS ACTION: Markets were mixed in Europe. Britain's FTSE ended 0.2 percent higher, while the CAC-40 in France fell 0.4 percent. German markets were closed. Europe's main markets are not set to re-open until Monday. Trading was more active in Asia as most markets don't close for Christmas. Japan's Nikkei 225 rose 1.2 percent, while South Korea's Kospi rose 0.4 percent. Hong Kong's Hang Seng edged 0.1 percent higher. The Shanghai Composite Index dropped 2.0 percent.
ENERGY: Benchmark U.S. crude fell $1.59 to $55.53 per barrel. Oil prices have been a major focus in markets over the past few weeks as they have fallen by about a half since the summer.
BONDS: U.S. government bond prices fell. The yield on the 10-year Treasury note rose to 2.28 percent.