Stocks strong after GDP, jobless claims reports

Stocks climbed Thursday after news that the economy grew 2.5% in the second quarter and that jobless claims are near a 6-year low.

The Dow Jones industrial average and S&P 500 were each up about 0.3% while the Nasdaq composite was 0.6% higher.

GDP: Up 2.5% in second quarter

JOBLESS CLAIMS: Near 6-year low

Still looming, however: A budget battle in Washington that may lead to a partial government shutdown.

"The prospect of a U.S. Federal government shutdown is likely to undermine equity prices further in the coming days," said analysts at Capital Economics in an e-mail commentary.

Wall Street stocks fell for a fifth straight session on Wednesday. The Dow fell 0.4% to close at 15,273.26. The S&P 500 fell 0.3% to 1,692.77. The Nasdaq dropped 0.2% to 3,761.10.

WEDNESDAY: Stocks drop for fifth day on debt talks, Wal-Mart

Benchmark oil for November delivery was down 18 cents to $102.48 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell 47 cents to close at $102.66 a barrel on the Nymex on Wednesday.

Japan's Nikkei 225 index overcame initial losses to advance 1.2% to 14,799.12.

European shares were under pressure.

Contributing: Associated Press