New York ? Stocks rallied Thursday, boosted by encouraging news on jobless claims and upbeat outlooks from Yahoo! and Aetna. The Dow Jones industrials soared 248 points Thursday after dropping to a five-year low.

Analysts said a rebound was expected after Wednesday’s steep declines, but doubted it would last given uncertainties such as war with Iraq. Indeed, the Dow lurched lower in early trading before posting solid gains.

The Dow Jones industrial average climbed 247.68, or 3.4 percent, to close at 7,533.95, after losing as much as 89 points earlier in the day.

The Labor Department reported Thursday that new jobless claims dropped unexpectedly by a seasonally adjusted 40,000 to 384,000, the lowest level in nearly two months.

Meanwhile, Yahoo rose $2.29 to $12.27 after the firm reported third-quarter profits that beat expectations. And Aetna climbed $5.11 to $36.80 after the health insurer said it expected earnings for the third quarter and the rest of 2002 to be higher than analysts’ estimates.