U.S. stocks advance on upbeat earnings

U.S. stocks advanced in early trading on Thursday as a drop in jobless claims and strong corporate earnings around the globe sparked optimism in the market.

The Labor Department said before the opening bell that the number of people filing for jobless benefits dropped by 11,000 workers to 457,000 in the week ended July 24, basically in line with market expectations.

The drop in initial claims suggests layoffs may be easing, but the level of claims still indicated that the labor market will be slow to recover because employers are still reluctant to hire.

Meanwhile, market sentiment was boosted by the latest string of strong corporate earnings and economic data from around the globe. Most notably, data from Europe showed the recovery in the continent was stronger than expected, easing some concerns that the slowdown there would put the global growth in jeopardy.

The Dow Jones industrial average gained 81.59 points, or 0.78 percent, to 10,579.47. The Standard & Poor's 500 index rose 9.45 points, or 0.85 percent, to 1,115.58 and the Nasdaq was up 15.28 points, or 0.67 percent, to 2,279.84.

Source: Xinhua