Jobless claims, goods orders signal modest rebound

[TomCADem]

Source: Associated Press

WASHINGTON (AP) -- A fitful economic recovery is drawing strength from a stabilizing job market and signs that manufacturing will contribute to the rebound. The evidence signals a better-than-expected end to the year, though doubts remain about growth in 2010.

The latest signs of improvement came in two reports Thursday. The Labor Department said the number of newly laid-off workers filing claims for unemployment aid fell more than expected last week. The four-week average for claims, which smooths out fluctuations, fell for the 16th straight week, to its lowest point since September 2008, when the financial crisis hit with full force.

Further evidence of a gradually healing economy was a Commerce Department report that orders to U.S. factories for big-ticket durable goods rose in November. The overall increase was less than expected. But excluding the volatile transportation category, the gains were twice what economists had forecast.

Stocks rose after the positive reports, ending a holiday-shortened session at new highs for the year. The Dow Jones industrial average gained about 53 points, or 0.5 percent.


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