Stock prices advanced on Thursday as two positive economic reports fed bullish sentiment. Thursday’s release of two positive economic reports helped investors overcome the jitters brought on by corporate earnings reporting season and the debt ceiling battle.  The Commerce Department’s report on initial housing starts for December came as good news after the November report indicated a decline.  Although economists had been expecting an increase in single-family residential construction by 887,000 starts in December, the report indicated that privately-owned housing starts in December were at a whopping 954,000. The Department of Labor brought more good news with its weekly report on initial unemployment claims , which indicated a decline to 335,000.  Economists had been expecting a less-significant drop to 368,000 new claims. As of 2:05 EST, the Dow Jones Industrial Average jumped 108 points (0.80 percent) to 13,619.  The S&P 500 Index surged 0.77 percent to 1,484 (NYSEARCA:SPY).  As the chart (above) indicates, the S&P 500 continues to rise above its previous resistance level – its September 14 closing price of 1,465.77.  Its Relative Strength Index is 68.38 (Chart courtesy of  Stockcharts.com ).  The Nasdaq Composite Index advanced 0.82 percent to 3,143 (NASDAQ:QQQ).  The Russell 2000 Index climbed 0.91 percent to 890 (NYSEARCA:IWM).   Ahead of Intel Earnings, S&P Looks at Chip ETFs The “Dollar Bull” Index ETF (NYSEARCA:UUP) declined 4 cents (0.18 percent) to 21.75 as of 1:54 EST. As of 1:43 EST, the S&P 500 Volatility Index – or VIX – declined 0.82 percent to 13.31 and the VIX Short-Term Futures ETN dropped 1.22 percent to 25.18 (NYSEARCA:VXX). The Euro STOXX 50 Index finished Thursday’s session with a 0.61 percent advance to 2,718 – staying well above its 50-day moving average of 2,600.  The STOXX 50 continues to be experiencing resistance at the 2,700 level.  Its Relative Strength Index is 63.15. The FTSE 100 Index rose 0.38 percent to 6,127 (NYSEARCA:EWU).  The German DAX Index climbed 0.58 percent to 7,735 (NYSEARCA:EWG).  France’s CAC 40 Index surged 0.96 percent to 3,744 (NYSEARCA:EWQ).  Spain’s IBEX 35 Index advanced 0.34 percent to 8,610 (NYSEARCA:EWP).  Italy’s FTSE MIB Index jumped 1.16 percent to 17,541 (NYSEARCA:EWI). As of 1:53 EST, the euro advanced 0.69 percent against the dollar, trading at $1.3389 (NYSEARCA:FXE). On London’s ICE Futures Europe Exchange, March futures for Brent crude oil advanced by $1.12 (1.02 percent) to $110.80/bbl. (NYSEARCA:BNO, NYSEARCA:USO).   OIH, UST:  Big ETF Outflows February Gold futures advanced by $5.50 (0.33 percent) to $1,688.70 per ounce (NYSEARCA:GLD).   Platinum Market Illustrates Silver Manipulation ETF Summary:  SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA)  +0.90%  as investors respond enthusiastically to the better-than-expected reports on initial unemployment claims and initial housing starts. SPDR EURO STOXX 50 ETF (NYSEARCA:FEZ)  +1.54%  making a more exaggerated advance than the Euro STOXX 50 Index (which rose only 0.61 percent) as American investors assume that upbeat domestic economic data will boost European stock prices. SPDR S&P Homebuilders ETF (NYSEARCA:XHB)  +1.66%  following the Commerce Department’s better-than-expected report on initial housing starts. iShares Barclays 20+ Year Treasury Bond Fund (NYSEARCA:TLT)  -1.16%  as advancing stock prices increase investors’ appetite for risk, making the safe haven of government bonds less attractive Learn More About iShares ETFs SPDR S&P 500 INDEX ETF (NYSEARCA:SPY)  +0.90%  as better-than-expected economic data puts investors in a “risk on” mode. Bottom line:  An encouraging report on initial housing starts fed investor optimism about the economic recovery, as increasing construction results in more jobs and more jobs create more consumer demand from retailers and manufacturers.  The drop in initial unemployment claims reinforced that enthusiasm.    Sign up for Wall Street Sector Selector’s FREE Stock Market Timing Indicator!    Disclaimer: The content included herein is for educational and informational purposes only, and readers agree to Wall Street Sector Selector’s Disclaimer , Terms of Service , and Privacy Policy before accessing or using this or any other publication by Wall Street Sector Selector or Ridgeline Media Group, LLC.