Bank of America, jobless data lift stocks

Stocks advanced Thursday, sending the Standard & Poor's 500 Index higher for a third straight day, as Bank of America rallied after swinging to a profit and jobless claims plunged to the lowest level in almost four years.

The S&P 500 added 6.46 points, or 0.49 percent, to close at 1,314.50. The benchmark gauge for U.S. equities has rallied 2 percent in three days.

The Dow Jones Industrial Average gained 46.24, or 0.37 percent, to 12,625.19. The Nasdaq composite index rose 18.62, or 0.67 percent, to 2,788.33.

"There has been some relief that financials might be along for the ride," Brian Jacobsen, chief portfolio strategist at Wells Fargo Advantage Funds in Menomonee Falls, Wis., said in a telephone interview. "A lot of the pessimism has been baked into the cake. We're more likely to see positive surprises."

Of the 35 companies in the S&P 500 that reported results since Jan. 9, 22 posted per-share earnings that beat projections, according to data compiled by Bloomberg. Combined S&P 500 profit is forecast to reach $104.64 a share in 2012, the highest level ever.

Thursday's rally in stocks was also helped by optimism that the U.S. economy will be able to weather Europe's debt crisis. -- Bloomberg News