DOW - The Bulls have made it. Well done!

Dow 12,719.49 +93.47 +0.74%

By: JeeYeon Park
CNBC.com Writer

Stocks backed off from their intraday highs, but still finished sharply higher Thursday after a pair of jobs news offered some hope that the employment picture was improving ahead of the critical government non-farm payroll report.

The Dow Jones Industrial Average jumped 93.47 points, or 0.74 percent, to finish at 12,719.49

The S&P 500 climbed 14 points, or 1.05 percent, to close at 1,353.22.

The tech-heavy Nasdaq added 38.64 points, or 1.36 percent, to end at 2,872.66, rallying for the eighth-consecutive session, but fell just short of a 10-1/2 year closing high.

The CBOE Volatility Index, widely considered the best gauge of fear in the market, fell to trade near 16.

Following a pair of robust jobs news in the morning, investors are now focusing on Friday's key government jobs report. Employers are expected to have added 90,000 jobs, according to a Reuters poll.

"One thing is an absolute: Tomorrow's number will influence hiring and consumer sentiment for the rest of the summer," said Todd Schoenberger, managing director of LandColt Trading. "Stocks have been on a tear, so traders may be more inclined to unload stocks following the number, even if it surprises on the upside."

Meanwhile, said Michael Sheldon, chief market strategist at RDM Financial Group said a better-than-expected jobs report could boost the S&P 500 from its recent trading range of 1,250 to 1,370.

"July has been a positive month [for stocks]...so if the employment data comes through positively as indicated by the ADP report today, we could see a push above the top end of the range in the next few weeks," said Sheldon.

Oil prices advanced after a government report said crude oil inventories dropped by 889,000 barrels and following the robust jobs reports. U.S. light, sweet crude gained $2.02 to settle at $98.67 a barrel, while London Brent crude jumped $4.97 to settle at $118.59.

Most retailers climbed after chains reported June same-store sales that far outpaced expectations as consumers snapped up seasonal items on discount.