NEW YORK (Reuters) - The S&P
500 index climbed to its third record closing high in four sessions on
Thursday as traders shrugged off data that showed the economy shrank in
the first quarter and bet on improvement in the second quarter.
New
claims for unemployment benefits fell more than expected last week,
pointing to a strengthening labor market and giving investors a reason
to buy U.S. stocks. Data from the Commerce Department showed that gross
domestic product contracted for the first time in three years in the
first quarter, although signs indicated it has rebounded.
"The
headline figure was weaker than expected, but it was mainly due to
slower inventory growth, which bodes well for future growth, future
orders, new orders," said Jeffrey Saut, chief investment strategist at
Raymond James Financial in St. Petersburg, Florida.
The S&P 500 (.SPX) gained 10.25 points or 0.54 percent, to 1,920.03 - a record close and a lifetime intraday high.
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