U.S. stocks extended their rally to close on a sharply positive note, buoyed by a slate of upbeat data from the labor and housing markets amid reports of progress towards a Greece debt deal.
S&P 500 Index advanced 1.10 percent to finish at 1,358.04. The Dow Jones Industrial Average gained 0.96 percent to end at 12,904.01. The Nasdaq Composite Index closed at 2,959.85, up 1.51 percent.
On the economic front, the number of Americans who continued to receive jobless benefits dropped below forecast to the lowest level in nearly four years, a government data showed. Jobless claims fell 13,000 to 348,000 last week from a revised 361,000 in the previous period, while economists projected 364,000 claims. The 4-week moving average declined 1,750 to 365,250.
Housing starts in January grew 1.5 percent to 699,000 annual rate above the revised December estimate of 689,000, better than economists expectations of a rise to 675,000. Building permits rose 0.7 percent 676,000 from the revised December rate of 671,000, yet trailed expectations of an increase to 680,000.
Meanwhile, the producer price index for finished goods advanced 0.1 percent in January, trailing expectations of a 0.3 percent rise. The U.S. Bureau of Labor Statistics reported that prices for finished goods declined 0.1 percent in December and moved up 0.2 percent in November.
Hot Stocks Of The Day: (GM, SJM, JWN, DVA, DTV, AEA)
In corporate news, General Motors Co. (NYSE:GM) rallied 8.9 percent to end at $27.17 following its quarterly numbers. The Detroit auto giant reported Q4 EPS of 28 cents, on revenue of $38.0 billion. GM posted earnings of $7.6 billion for 2011.
J.M. Smucker Co. (NYSE:SJM) lost 6.5 percent to $71.60 after the branded food products company cut its full-year earnings forecast on the back of lower third-quarter results and an expected continuation of volume softness in the fourth quarter. The Orrville, Ohio-based company now sees non-GAAP EPS of $4.60 to $4.65 for 2012, from prior view of $4.90 to $5.00.
Nordstrom Inc. (NYSE:JWN) retreated 2.4 percent to $50.90 in extended trading after the apparel retailer guided fiscal 2012 EPS below consensus. It sees EPS of $3.30 to $3.45 on same-store sales growth of 4 percent to 6 percent. Analysts' expect EPS of $3.58 for the full year. JWN posted Q4 EPS of $1.11 on sales of $3.17 billion. Consensus estimate called for EPS of $1.10 on sales of $3.17 billion for the quarter.
DaVita Inc.