US stocks finished higher with the Dow Jones Industrial Average reaching its 71st record close for the year.
The Dow closed up 60 points to 24,824, led by a rally in UnitedHealth Group and Caterpillar Inc.
The S&P 500 added 5 points to 2,687 and the Nasdaq grew 11 points to 6,950.
Oil prices rose with West Texas Intermediate up 0.45% to US$59.91 per barrel after data from the Energy Information Administration showed domestic crude supplies fell by 4.6 million barrels, compared to expectations for a declines of 3.7 million barrels.
On late Wednesday the American Petroleum Institute reported a 6 million barrel drawdown.
The increase in crude prices helped push shares in Chesapeake Energy Corp higher.
Shares in Apple recovered following a decline on concerns about sales of its iPhone X and reports of lawsuits against the company.
Tesla reversed some its earlier losses when KeyBanc analysts cut their fourth quarter estimates for Model 3 deliveries.
Meanwhile, investors weighed mixed economic data.
Initial jobless claims were unchanged at just 245,000 last week, which was seen to indicate a strong labour market.
The trade goods balance deficit widened by 2.3% in November to US$69.7bn and wholesale inventories increased 0.7% in the same month.
The Chicago purchasing managers index unexpectedly rose to 63.9 in November to 67.6 in December.
In currencies, the dollar was still down against other currencies.
Bitcoin was lower after South Korea announced a crackdown on cryptocurrency trading.
US stocks open higher
US stocks opened on the front foot, led by energy stocks, as investors weighed data on jobless claims and the trade deficit.
The Dow Jones Industrial Average gained 54 points to 24,828, the S&P 500 increased 4 points to 2,686 and the Nasdaq added 13 points to 6,953.
Energy stocks were lifted by oil prices, which stabilised near two-and-a-half-year highs. Chesapeake Energy and Cabot Oil & Gas Corp were among the top risers.
Initial jobless claims were unchanged at 245,000 last week, more than the 240,000 claims expected by analysts but the underlying trend remained consistent with a tightening labour market.
It marked the 147th straight week that claims remained below the 300,000 threshold, which is associated with a strong labour market.
The US goods trade deficit widened by 2.3% in November to US$69.7bn, more than the US$67.7bn expected, the Commerce Department revealed.
Wholesale inventories grew 0.7% in November, compared to forecasts for a 0.3% rise.
The US dollar was lower against other major currencies on worries that Donald Trump's corporation tax cut could push the country's deficit higher.
The Chicago purchasing managers index, a measure of current business activity, rose from 63.9 in November to 67.6 in December. It was better than the expected decline to 62 and marked the highest level since March 2011.
Meanwhile, Bitcoin is still down 7% on the day after South Korea's clampdown.
US pre-market
US stocks are expected to open slightly higher, boosted by energy shares after oil prices reached two-and-a-half-year highs.
Dow Jones Industrial Average futures rose 38 points to 24,826 S&P 500 futures climbed 2 points to 2,687 while the Nasdaq added 12 points to 6,466.
Energy stocks, including Devon Energy Corp (NYSE:DVN) and Chesapeake Energy (NYSE:CHK), gained ahead of the opening bell after oil prices rose on the back of US inventory data on Wednesday showing an unexpectedly large draw down in supply last week.
West Texas Intermediate crude rose 0.2% to US$59.75 per barrel on Thursday, around the highest level since June 2015.
Tesla Inc. (NASDAQ: TSLA) continued to fall in pre-market trade after closing lower on Wednesday when KeyBanc analysts cut fourth quarter forecasts for deliveries of the Model 3 to 5,000 from 15,000.
On the economic data front, weekly jobless claims in early trading are expected to show 239,000 Americans filled for unemployment benefits last week, compared to 245,000 the previous week.
Data on the advanced goods trade balance is forecast to reveal deficit of US$67.7bn in November, down from US$68.3bn previously.
Wholesale inventories data and the Energy Information Administration report on weekly crude inventories will also be released during the session.
In currencies, the dollar was weaker, falling 0.24% against the pound, 0.39% versus the euro and 0.44% versus the yen.
Meanwhile, Bitcoin tumbled to lose more than US$1,000 after South Korea said it was considering a potential shutdown of at least some cryptocurrency exchanges.
Asia stocks closed mostly higher while the FTSE 100 and other European markets were trading broadly flat.