Stocks End Higher on Jobless Claims, Home Sales

NEW YORK (Reuters) - U.S. stocks rose in light trading volume on Wednesday, supported by data that pointed to stabilization in the labor and housing markets, areas that have fed concerns about a "double dip" recession.

Trading volume was among the lightest of the year one day before the Thanksgiving holiday, with many senior traders absent from trading floors. Even so, the Dow industrials and the S&P 500 edged to fresh 13-month highs.

Natural resource stocks got a lift from the weak dollar, which slumped to a 15-month low against a basket of currencies, partly because the better-than-expected data encouraged investors to look to assets with higher returns.

New claims for jobless benefits fell sharply in the latest week, while sales of new U.S. single-family homes rose in October to their highest level in a year.

Investors have been concerned that the sluggish performance of these areas could push the economy back into recession in a so-called "double dip."

Fred Dickson, market strategist at D.A. Davidson & Co. in Lake Oswego, Oregon, said the drop in weekly jobless claims and stronger home sales set a slightly better economic tone.

"It's a little bit of a Thanksgiving lift on Main Street," he said. "On a different day this week, we probably would have seen a big bounce in the market."

The Dow Jones industrial average <.DJI> gained 30.69 points, or 0.29 percent, to end at 10,464.40. The Standard & Poor's 500 Index <.SPX> rose 4.98 points, or 0.45 percent, to 1,110.63. The Nasdaq Composite Index <.IXIC> advanced 6.87 points, or 0.32 percent, to close at 2,176.05.

U.S. financial markets will be closed on Thursday to mark Thanksgiving. On Friday, trading resumes, but the U.S. stock market will close early at 1 p.m. (1800 GMT).

Gold stocks were having a big day as the price of gold broke another record above $1,180 an ounce. U.S. gold miner Newmont Mining Corp rose 2.9 percent to $54.90.