Stocks continue rally after drop in jobless claims

NEW YORK (AP) — Stocks are extending a September rally after another report showed modest improvement in the jobs market.

The Labor Department says the number of people requesting unemployment benefits for the first time fell to the lowest level in two months, adding to signs that employers aren’t resorting to staff cuts as economic growth slows.

First-time claims fell to 451,000 last week from a revised 478,000 a week earlier.

Investors have taken solace in recent improvements in employment data that suggest the economy will continue to grow slowly during the rest of the year.

The Dow Jones industrial average is up 87, or 0.8 percent, at 10,474. The S&P 500 is up 10, or 0.9 percent, at 1,109, while the Nasdaq composite is up 22, or 1 percent, at 2,251.