Market Rallying on the back of Economic Data

The U.S. equity market is rallying on the back of a series of economic data released earlier in the day. Among the data released earlier today, a labor department report showed that initial jobless claims fell to their lowest levels since July 2008, indicating a slow but steady recovery in the jobs market. Also, a Commerce Department report showed that consumer spending rose for the fourth consecutive month in October. The news of increase in consumer spending has boosted consumer stocks, which are leading the gains in the equity market.

Among the consumer stocks making gains in trading today are Crocs Inc. (NASDAQ: CROX), which is currently up 5.15% to $17.77, and Mattel Inc. (NASDAQ: MAT), which is currently up 1.70% to $25.69. Tiffany & Co. (NYSE: TIF) is among the major gainers in trading today. Shares of the retailer are currently up 5.08% to $61.23.

After opening higher, all three major indexes have made solid gains. The Dow Jones is currently up 1.20% to 11,168.55, the S&P 500 is currently up 1.23% to 1,195.27 and the Nasdaq is currently up 1.83% to 2,540.69.

Despite some positive economic data, the housing market is still weak. A Commerce Department report released today showed that sales of new homes fell unexpectedly in October. According to the figures released by the Commerce Department, purchases fell 8.1% to an annual rate of 283,000 in October.