Retail sales increased more than expected in May and first-time applications for jobless benefits recently fell, helping to boost the economy, Reuters reported. Retail sales rebounded last month and April compared to March, which saw the first monthly retailing business decline since October 2012.

Last month's retail sales rose 0.6% after edging up 0.1% in April, U.S. Department of Commerce figures showed Thursday. Sales had been expected to rise 0.4%. Core retail sales—excluding autos, building materials and fuel—increased 0.3% after rising 0.2% in April, Reuters reported.

"There is an emerging positive story for consumers and the potential for a virtuous cycle to take hold," said Jim Baird, chief investment officer at Plante Moran Financial Advisors in Kalamazoo, Mich. "Pressure is still largely on the consumer to carry most of the water to keep the economy moving forward."

Consumer spending, which accounts for 70% of U.S. economic activity, increased at its fastest pace in two years during the first quarter, while the economy grew at 2.4% in the first three months of the year.

In a separate report, the U.S. Labor Department said initial claims for state unemployment benefits declined 12,000 to a seasonally adjusted 334,000 last week. The report said the recent pace of steady job gains will continue through early June, Reuters reported.

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