New York ? Wall Street pushed higher Thursday as a drop in jobless claims and an upbeat outlook from IBM recharged investors’ hopes that the economy was improving.

Analysts said many investors were largely brushing off mixed economic data in favor of news suggesting rebounding corporate profits by year’s end.

“It’s three steps forward, two steps back,” said Tony Cecin, director of institutional trading at US Bancorp Piper Jaffray. “Investors are looking toward the second half of the year and ignoring what will be an average second quarter.”

But he added, “caution is still the watchword. People are expecting the market to pull back because it had a pretty dynamic move in the last two months.”

The Dow Jones industrial average closed up 65.32, or 0.8 percent, at 8,713.14, nearly wiping out a two-day loss of 78 points.

The broader market also advanced. The Nasdaq composite index rose 16.48, or 1.1 percent, to 1,551.38. The Standard & Poor’s 500 index gained 7.39, or 0.8 percent, to 946.67.

Investors have sent stocks higher in recent weeks on encouraging earnings, but now they are looking for strong signs of an economic rebound by year’s end. Until they see that evidence, trading will be choppy and likely confined to a range, analysts said.

“While things aren’t great yet, they are starting to look up,” said Ed Peters, chief investment officer at PanAgora Asset Management Inc. “As long as interest rates stay low, it will put a bottom on the stock market.”

IBM, a Dow component, rose $1.20 to $89.90 after the company’s chief executive said demand in the technology sector is stabilizing.

Computer Associates climbed $2.07, or 11.4 percent, to $20.26 after the technology company reported quarterly earnings that beat Wall Street’s estimates; however, it also disclosed it had received two more federal subpoenas in connection with its accounting practices.

Intuit advanced $2.83 to $41.81 after the maker of tax preparation software reported fiscal third-quarter operating earnings that beat estimates by 4 cents per share.

Decliners included Target, which fell $1.47 to $34.46, after the retailer reported first-quarter earnings that fell a penny short of analysts’ expectations.

Advancing issues outnumbered decliners 8 to 5 on the New York Stock Exchange. Volume was moderate.