US STOCKS-S&P 500, Nasdaq at record highs as stimulus bets offset higher jobless claims

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* Weekly jobless claims at 885,000 vs 862,000 in prior week
* Fed maintaining easy monetary policy helps stocks
* Indexes up: Dow 0.44%, S&P 0.41%, Nasdaq 0.52%

(Updates to market open)
By Ambar Warrick and Shreyashi Sanyal
Dec 17 (Reuters) - The S&P 500 and the Nasdaq hit record
highs on Thursday on increased optimism over a coronavirus
stimulus bill, even as an unexpected rise in weekly jobless
claims pointed to further economic stress from the COVID-19
pandemic.
Technology stocks .SPLRCT were among the best performing
S&P sectors, with utilities .SPLRCU and materials .SPLRCM
shares, primed to benefit from more stimulus, also making large
gains.
Negotiations were underway in Congress late on Wednesday
over the details of a $900 billion aid bill, with top Democrats
and Republicans sounding more positive than they have in months
on a fresh response to a crisis that has killed more than
304,000 Americans and thrown millions out of work. The number of Americans filing first-time claims for jobless
benefits unexpectedly rose last week as a relentless surge in
new coronavirus infections hobbled business operations and hurt
hiring trends. This followed a reading on Wednesday that showed U.S. retail
sales fell more than expected in November, as consumer spending
remained constrained. Still, many participants view the recent data as furthering
the case for immediate measures to support the economy.
At 10:05 a.m. ET, the Dow Jones Industrial Average .DJI
was up 131.50 points, or 0.44%, at 30,286.04, the S&P 500 .SPX
was up 15.05 points, or 0.41%, at 3,716.22. The Nasdaq Composite
.IXIC was up 65.21 points, or 0.52%, at 12,723.40.
The Federal Reserve also kept interest rates at near-zero
levels on Wednesday and vowed to keep funneling cash into
financial markets over the long term. Equity markets have been
among the main beneficiaries of accommodative policy through the
virus outbreak. "We have been waiting on this stimulus for months now, but
we also have the Federal Reserve buying almost a trillion and a
half dollars worth of assets a year," said Mike O'Rourke, chief
market strategist at JonesTrading.
"They have promised to keep interest rates at zero for the
next three years and that is also where the optimism comes
from."
Among individual movers, General Mills Inc GIS.N rose 1.1%
after it beat second-quarter profit estimates, boosted by sales
of its pet foods and baking products. Outsourcing services provider Accenture ACN.N rose 7.4%
after it raised its annual sales forecast and beat quarterly
revenue estimates as an extended work-from-home period boosted
its digital, cloud and security services. MacroGenics Inc MGNX.O jumped 3% after the drug developer
said the U.S. Food and Drug Administration had approved its
treatment for an advanced type of breast cancer. Advancing issues outnumbered decliners for a 1.60-to-1 ratio
on the NYSE and a 1.51-to-1 ratio on the Nasdaq.
The S&P index recorded 28 new 52-week highs and no new low,
while the Nasdaq recorded 141 new highs and three new lows.