Stocks are extending their September rally following more encouraging news on the job market.

The Labor Department says first-time claims for unemployment benefits fell last week to the lowest level in two months. In another hopeful sign, the trade deficit narrowed in July.

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According to preliminary calculations, the Dow Jones industrial average rose 28, or 0.3 percent, to close at 10,415 Thursday. The Dow had risen as much as 90 points earlier.

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The Standard & Poor’s 500 index rose 5, or 0.5 percent, to 1,104, while the Nasdaq rose 7, or 0.3 percent, to 2,236.

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