Positive economic data and a falling greenback pushed the Dow to its highest closing level of the year. Trade was thin ahead of the Thanksgiving holiday on Thursday.
In employment news, new unemployment claims dropped to a 14-month low of 466,000 last week. Forecasts were for a fall to 500,000.
Continuing claims fell from 5,613,000 the previous week to a better than expected 5,423,000.
Meanwhile, new home sales increased from a 405,000 unit rate in September to a 430,000 annual unit rate in October. Expectations were for a drop to 404,000.
Personal income increased a slightly higher than anticipated 0.2% in October according to a Commerce Department report. Personal spending rose 0.7% after decreasing 0.6% in September.
Disappointingly orders for durable goods weakened 0.6% during October. Forecasts were for a 0.5% increase.
The Dow Jones added 30.69 points, or 0.29%, to 10,464.40, the S&P 500 put on 4.98 points, or 0.45%, to 1,110.63 and the NASDAQ gained 6.87 points, or 0.32%, to 2,176.05.
Leading gains among the blue chips, Caterpillar and Boeing advanced 1.8% and 1.9%.
Homebuilder Pulte Homes gained 1.2% on the back of the better than expected home sales data. D.R. Horton and Lennar put on 0.8% each.
Retailers Target and Wal-Mart added 0.8% and 0.2% ahead of the release of sector sales reports next week.
Financials weighed. Morgan Stanley and Goldman Sachs lost 2.2% and 1.3%, while JPMorgan, Citigroup and Bank of America fell between 0.8% and 1%.
NYMEX light crude oil for January delivery rose US$1.94 to US$77.96 a barrel. Exxon Mobil, Chevron and ConocoPhillips added 0.7%, 0.8% and 0.4% respectively.
COMEX gold for December delivery rose US$21.20 to a record settlement of US$1,187 an ounce.
European Markets
European stocks advanced on the back of the release of positive economic data out of the US. Pharmaceuticals made the strongest gains, while resource stocks tracked commodity prices higher.
The UK benchmark FTSE 100 gained 40.85 points, or 0.77% to 5,364.81. The French CAC40 added 24.54 points, or 0.65% to 3,809.16, while the German DAX rose 33.71 points, or 0.58% to 5,803.02.
It was a mixed day among financials. Société Generale, Barclays and HSBC added 1.6%, 0.7% and 0.6% respectively.
Commerzbank and Royal Bank of Scotland lost 1.6% and 1.5%.
Miners Anglo American, Antofagasta and Xstrata put on 2.7%, 2.5% and 1.4%.
BHP Billiton rallied 3.1%, while Rio Tinto bucked the trend, shedding 0.8% on speculation Chinalco might sell its 12% stake in the Aussie miner.
BG Group was the best of the heavyweight energy stocks having gained 1.3%.
Drugmakers GlaxoSmithKline, Sanofi-Aventis and AstraZeneca added 1.4%, 1.6% and 2.5% respectively.
Compass Group surged 6.1% after the world’s largest caterer beat analysts’ full-year pretax profit expectations.
Entertainment group Vivendi put on 4.3% following a broker upgrade.
EADS dropped 3.8% after two price target cuts on the aerospace heavyweight.
Japanese Markets
The Japanese stock market traded both sides of the gain line Wednesday, before finishing the day just in the black. Exporters were strong, while the shippers capped gains.
The Nikkei 225 added 40.06, or 0.43% to 9,441.64.
Japan’s largest bank, Mitsubishi UFJ Financial Group lost 0.7%, unable to shake rumours it would seek more funds from investors through a share placement.
The picture looked a little rosier for the exporters with new data showing exports to Asia were strong.
Sony and Kyocera spiked 2.1% and 1.6% respectively. Kawasaki Heavy Industries slumped 4%.
Honda rose 2.6%, while Nissan spiked 3.9% and Toyota 1.2% as the autos made strong contributions to the market.
Japan Airlines jumped 3.5%, however came off record lows from the previous sessions as the airline struggles to refinance its loans.
Weighing on the market were the shippers, with Nippon Yusen K.K falling 4.8% and Kawasaki Kisen Kaisha retreating 3.7% as the Baltic Dry Index went lower for the third straight day.
Hong Kong Markets
Hong Kong shares recovered some of the previous sessions losses as investors sought bargains. Insurers and resource stocks led the rally.
The Hang Seng put on 188.66, or 0.84% to 22,611.80.
China Life and Esprit Holdings jumped 4.5% and 4%.
Fantasia Holdings rallied as the property developer made its market debut. The company’s shares closed 2.3% dearer than its IPO price.
Another stock to make its market debut Sany Heavy Equipment was the most actively traded stock on the index. The coal equipment makers’ shares closed 46.5% higher than its IPO price.
PetroChina and Cnooc added between 2.2% and 2.4% as the country looks to increase gas output.
Bank of China weakened 3%.1 on reports it could be tapping the market for capital. China’s five biggest banks submitted plans to regulators to raise funds.
