(For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.) * Boeing climbs on rival Airbus’ strong forecast * Nvidia beats forecast but shares dip * Kaplan says labor market tighter than realized (Updates to market close) NEW YORK, May 27 (Reuters) - U.S. stocks advanced slightly on Thursday, as data showing improvement in the labor market helped bolster expectations in the economic recovery and spurred a minor rotation towards stocks seen as more likely to benefit from the rebound. The number of Americans filing new unemployment claims dropped more than expected last week to a 14-month low of 406,000 as pandemic restrictions continue to be lifted, while a separate report showed business spending on equipment picked up speed. The data helped lift U.S. Treasury yields, with the benchmark 10-year note reaching a high of 1.625% and denting the attractiveness of higher-growth names in areas such as technology while helping those seen as more likely to benefit from an improving economy such as financials and small caps. Still, the 10-year yield remained within the range it has been in for several days, which served to keep inflation concerns in check and limited the rotation within sectors. Investors have been closely watching economic data and comments from Federal Reserve officials for signs of runaway inflation and the possibility the central bank may begin to pull back on its massive stimulus measures. “When you look at the jobless claims that actually shows we’re continuing to make progress, if we get a strong jobs report in the next release that’s going to provide some support, until then there’s uncertainty so I don’t think there’s a lot of momentum either way,” said Brad McMillan, chief investment officer for Commonwealth Financial Network, in Waltham, Mass. “We’ve had the Fed come out and say we’re going to continue to support things but now we’re starting to be a little bit nervous, that’s obviously a headwind.” Unofficially, the Dow Jones Industrial Average rose 136.72 points, or 0.4%, to 34,459.77, the S&P 500 gained 4.81 points, or 0.11%, to 4,200.8 and the Nasdaq Composite dropped 1.62 points, or 0.01%, to 13,736.38. Weighed down by weakness in tech shares, the Nasdaq underperformed the Dow and S&P. U.S. planemaker Boeing climbed after its European rival Airbus outlined an almost two-fold increase in production, citing a strong recovery in aviation from the COVID-19 pandemic. Boeing supplier General Electric jumped and the two were the biggest boost to the S&P industrials, the best performing sector on the day. Investors will now look to the personal consumption expenditure report due on Friday as it is the central bank’s preferred inflation measure for its 2% long-term target. Fed officials have repeatedly maintained in recent days that the central bank is not ready to adjust its monetary support, although some have suggested they are open to begin discussing the reduction of its bond-buying plan. On Thursday, Federal Reserve Bank of Dallas President Robert Kaplan said the labor market is tighter than many realize. Strategists expect the S&P 500 to end the year at about 4,300, according to a Reuters poll. The benchmark index is currently less than 1% away from its record high of 4,238.04 points. Nvidia Corp forecast second-quarter revenue above analysts’ estimates, but shares fell as the chipmaker could not say for certain how much of its recent revenue rise was driven by the volatile cryptocurrency-mining market. Reporting by Chuck Mikolajczak; Additional reporting by Sinéad Carew in New York; Editing by Lisa Shumaker Our Standards: The Thomson Reuters Trust Principles.