US stocks advanced on Thursday, driving the Dow to its first close over the 14,000 mark.

Forecast-topping results from the tech and industrial companies shifted investor focus back to earnings optimism, even as Federal Reserve Chief Ben Bernanke told a congressional hearing that the bank needs more economic data before it is convinced inflation is moderating, and warned that losses in the subprime mortgage sector could hit $100 billion.

In economic news, the Labor Department said initial claims for jobless benefits unexpectedly fell to their lowest level in two months last week, falling to 301,000 from an upwardly revised 309,000 claims the prior week.

And the New York-based Conference Board said its Index of Leading Economic Indicators fell 0.3 per cent in June, after a downwardly revised 0.2 per cent rise the previous month. Wall Street had expected the index to hold steady