* Jobless claims, inflation data support stocks
* Target cuts full-year profit forecast
* Indexes up: Dow 0.6 pct, S&P 0.7 pct, Nasdaq 1.1 pct
By Luke Swiderski
NEW YORK, Nov 21 (Reuters) - U.S. stocks rose on Thursday,rebounding from three days of weakness, after economic datapointed to a slowly improving labor market and subduedinflation.
Financial shares led the market higher as the S&P 500 onceagain closed in on the 1,800 milestone it reached earlier thisweek. Investors remain unsure about the timing for the FederalReserve to reduce its $85 billion-per-month in bond buying thathas lowered rates, but some say the market will weather theeventual pullback of that stimulus.
"I think the stock market will be on a rising track for therest of the year," said Margie Patel, senior portfolio managerat Wells Capital Management, at the Reuters Global InvestmentSummit on Thursday.
"Everyone would like to see a correction" so they can add topositions, she said, adding that equities will be the strongestasset class in 2014, as well.
The central bank has repeated it will not withdraw supportuntil the economy can stand on its own and interest rates willremain low well after stimulus is cut back.
A combination of a growing economy and continued stimulusgive investors a good reason to buy stocks, Steven Einhorn, vicechairman of Omega Advisors, told the Summit.
There is also "a whole host of things the Fed can do tomitigate and moderate the sting" of the stimulus reduction,Einhorn said. Such measures include additional forward guidancefor markets, which the members of the Fed's policy settingcommittee discussed during their most recent meeting, minutesreleased on Wednesday showed.
Expectations that the Fed could start cutting stimulus - butwithout interest-rate increases as well - has helped to widenthe spread between long- and short-debt debt. That benefitsbanks, which make money borrowing at short rates and lending atlonger rates. Bank of America Inc shares rose 2.6percent to $15.53 a share.
The Dow Jones industrial average rose 92.15 points or0.58 percent, to 15,992.97, the S&P 500 gained 13.27points or 0.74 percent, to 1,794.64 and the Nasdaq Composite added 42.598 points or 1.09 percent, to 3,963.868.
The number of Americans filing new claims for unemploymentbenefits fell more than expected last week, while producerprices fell for a second straight month in October, indicatinginflation pressures remain muted.
"The (new claims) number we got this morning is very, veryrobust ... We've been handed a few one-two punches - thegovernment shutdown, the payroll tax increase - but guess what,like Elton John, the economy is still standing," said AnthonyChan, chief economist at Chase Private Client.
Target shares fell 3.2 percent to $64.35 aftercomparable sales rose less than expected in the third quarterand it lowered its full-year profit forecast.
But the Morgan Stanley retail index rose 0.6 percent,boosted by a 7.5 percent climb in Williams-Sonoma Inc to$59.69. The home products retailer reported quarterly resultsabove estimates and said it was well-positioned for the holidayseason.
- Budget, Tax & Economy
- Stocks & Offerings