Stocks rally on economic data, Cisco

By Caroline Valetkevitch

NEW YORK (Reuters) - U.S. stocks jumped on Thursday, pushing the S&P 500 up for a fourth day, as economic data boosted confidence in the recovery and strong results from Cisco Systems (CSCO.O) suggested a rebound in technology spending.

The market's advance was broad-based, and the Dow ended above 10,000 for the first time in two weeks.

Shares of Cisco, which makes computer network equipment, rose 2.8 percent to $23.93 and helped lead the session's gains, a day after it posted a stronger-than-expected profit and said business was recovering.

Data showed U.S. non-farm productivity rose more than expected in the third quarter as companies squeezed more output from a smaller pool of labor. A separate report showed fewer U.S. workers filed new jobless insurance claims than forecast last week -- hitting a 10-month low.

The claims report boosted investor sentiment, and created "some anticipation that maybe tomorrow's employment report may be better than expected," said Peter Jankovskis, co-chief investment officer at OakBrook Investments LLC in Lisle, Illinois.

The U.S. government is scheduled to release its key monthly jobs report Friday morning, with economists polled by Reuters forecasting a loss of 175,000 jobs in October, sharply below the 263,000 jobs cut in the previous month. But the U.S. unemployment rate is forecast to rise to 9.9 percent in October from September's rate of 9.8 percent, which was a 26-year high.

The Dow Jones industrial average .DJI jumped 203.82 points, or 2.08 percent, to end at 10,005.96. The Standard & Poor's 500 Index .SPX gained 20.13 points, or 1.92 percent, to 1,066.63. The Nasdaq Composite Index .IXIC rose 49.80 points, or 2.42 percent, to close at 2,105.32.

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