US STOCKS-Dow, Nasdaq hit record highs as focus turns to Biden's stimulus speech

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* TSMC results power semiconductor stocks
* Delta Air Lines CEO calls 2021 year of recovery
* Weekly jobless claims rise more than expected
* Biden to outline stimulus plan on Thursday evening
* Indexes up: Dow 0.37%, S&P 0.17%, Nasdaq 0.42%

(Adds comment; updates market prices)
By Devik Jain and Medha Singh
Jan 14 (Reuters) - The Dow and the Nasdaq hit record highs
on Thursday in anticipation of President-elect Joe Biden's
pandemic aid proposal to jump-start a struggling economy after
data highlighted weakening labor market conditions.
The Labor Department's weekly jobless report showed the
number of Americans filing first-time claims for unemployment
benefits increased more than expected last week, underscoring
the impact of a resurgence in COVID-19 infections. However, the S&P 500 rose for the seventh time in nine
sessions this year as investors count on Biden to unveil during
a prime-time address on Thursday evening a stimulus plan that
could exceed $1.5 trillion. "We're really focused on the stimulus measures so we largely
ignored the fact that we also had a really big spike in jobless
claims," said Max Gokhman, head of asset allocation at Pacific
Life Fund Advisors in Newport Beach, California.
"Perhaps it's back to bad news is good news situation where
market expects that deteriorating economic data will motivate
lawmakers to issue even more stimulus."
Delta Air Lines DAL.N gained 3.6% as Chief Executive Ed
Bastian forecast 2021 to be "the year of recovery" after the
coronavirus pandemic prompted its first annual loss in 11 years.
The S&P 1500 airlines index .SPCOMAIR added 3.3%.
Eight of the 11 major S&P sectors rose with economy-linked
energy .SPNY , financial .SPSY and industrials .SPLRCI
among the biggest gainers.
The domestically-focused small-cap Russell 2000 .RUT , as
well as the Dow Jones Transports index .DJT , considered a
barometer of economic health, both scaled all-time highs.
Analysts have said near-term political uncertainties in
Washington, a relentless rise in coronavirus cases and a slower
than expected rollout of vaccines could impede gains for
equities in the short term.
Meanwhile, President Donald Trump became the first president
in U.S. history to be impeached twice when the House voted
232-197 on Wednesday to charge him with inciting riots at the
Capitol. The impeachment proceedings threaten to hang over the
beginning of Biden's term. "With the current political situation, which is Biden and
the Democratic Senate, it seems like there's really not going to
be a whole lot that can deter the rally from continuing,"
Gokhman said.
"I don't think the delay (in fiscal aid) of a few weeks due
to impeachment trial is necessarily going to derail the further
economic boost that we're going to get from the stimulus."
At 11:40 a.m. ET the Dow Jones Industrial Average .DJI
rose 115.85 points, or 0.37%, to 31,176.32, the S&P 500 .SPX
gained 6.29 points, or 0.17%, to 3,816.13 and the Nasdaq
Composite .IXIC climbed 55.56 points, or 0.42%, to 13,184.51.
U.S.-listed shares of Taiwan Semiconductor Manufacturing Co
Ltd TSM.N surged 12% after the company posted its best-ever
quarterly profit and raised revenue and capital spending
estimates to record levels. The Philadelphia semiconductor index .SOX jumped 3% to a
record high.
Attention is shifting to the earnings season with results
from JPMorgan JPM.N , Citigroup C.N and Wells Fargo WFC.N
slated for Friday.
First-quarter and 2021 corporate guidance will be key for
investors as new lockdowns threaten to push back a recovery in
corporate earnings, according to investment banks. Advancing issues outnumbered decliners by a 2.9-to-1 ratio
on the NYSE and the Nasdaq.
The S&P 500 posted 38 new 52-week highs and no new low,
while the Nasdaq recorded 492 new highs and seven new lows.