The Dow gained 267.42 points, or 0.92%, to close at 29,297.64. The S&P 500 rose 0.84% to 3,316.81. The Nasdaq Composite advanced 1.06% to 9,357.13. Solid economic data coupled with strong quarterly earnings and a tailwind from the U.S.-China trade deal signing lifted stocks to record highs.
Weekly jobless fell by 10,000 to 204,000, well below a Reuters estimate of 216,000. Data from the Philadelphia Federal Reserve also showed a jump in business activity for the month. Morgan Stanley's quarterly earnings also helped improve sentiment around the season and added to a solid start to the reporting period. To be sure, with stocks trading at all-time highs, corporate earnings will have to be good enough to justify the market's high valuation.
Shares of Morgan Stanley jumped 6.61% after the bank posted quarterly results that easily beat analyst expectations. Morgan Stanley's three main businesses, investment management, wealth management and trading all posted revenues that topped estimates.