* Jobless claims unexpectedly rise in latest week
* Data reassures that Fed won't scale back soon on stimulus
* EMC up on dividend, buyback
* Indexes up: Dow 0.51 pct, S&P 0.66 pct, Nasdaq 0.89 pct
By Chuck Mikolajczak
NEW YORK, May 30 U.S. stocks bounced back on
Thursday from declines in the prior session as
weaker-than-expected economic data kept afloat the belief
stimulus measures by central banks will likely continue.
First-time claims for unemployment benefits unexpectedly
rose in the latest week while the government's latest reading on
first-quarter gross domestic product came in slightly below
The softer-than-expected data helped quiet speculation that
the Federal Reserve may begin to trim its stimulus measures
sooner than had been expected.
"The mentality of late has been, buy the market on weak data
because it is going to keep the Fed involved because they are
going to pump in liquidity," said Dan McMahon, director of
equity trading at Raymond James in New York.
Stocks' performance has been closely tied lately to
perceptions about central bank policy. Shares tumbled on
Wednesday as U.S. Treasury bond yields rose to the highest level
in 13 months on concerns the Fed would curb its bond-buying
because of signs the economy was strengthening.
Pending home sales rose 0.3 percent in April to the highest
level since April 2010, but analysts were expecting a 1.1
On Tuesday, reassurances from central banks around the world
that programs would remain intact had boosted equity prices.
One of the trademarks of the rally this year has been the
ability of equities to quickly recover from any losses, with
only five losing weeks in 2013.
"It is this buying on dips phenomenon," said Tim Ghriskey
chief investment officer of Solaris Group in Bedford Hills, New
York. "It is literally cash that is sitting on the sidelines
looking for pullbacks and we have had a bit of one here."
The Dow Jones industrial average gained 77.65 points,
or 0.51 percent, to 15,380.45. The Standard & Poor's 500 Index
gained 10.89 points, or 0.66 percent, to 1,659.25. The
Nasdaq Composite Index gained 30.78 points, or 0.89
percent, to 3,498.29.
Loose monetary policies by central banks around the world
have lifted stock markets, driving both the Dow and the S&P 500
to record highs this year. The S&P 500 is up more than 16
percent this year so far.
In company news, Costco Wholesale Corp reported
third-quarter earnings that beat expectations by a penny, though
sales were below forecasts. Shares edged up 0.4 percent to
Semiconductors were higher after chipmaker Avago
Technologies forecast current-quarter revenue largely
above expectations. Avago shares jumped 10 percent to $37.89
while the PHLX semiconductor index climbed 1.8 percent.
NV Energy Inc surged 22.6 percent to $23.64 after a
unit of Berkshire Hathaway Inc agreed to buy
the electric utility for $5.6 billion. Berkshire class B shares
rose 1.7 percent to $114.93.
Shares of EMC Corp, the data storage equipment
makers, rose 5.2 percent to $24.90 after instituting a quarterly
dividend and increasing its stock buyback program to $6 billion
from $1 billion.