You could use an empty jQuery object instead of an array:
var elements = $();
for(x = 0; x < 1000; x++) {
elements = elements.add('<div>'+x+'</div>');
// or
// var element = $('<div>'+x+'</div>');
// elements = elements.add(element);
}
$('body').append(elements);
This might be useful if you want to do stuff with newly generated element inside the loop. But note that this will create a huge internal stack of elements (inside the jQuery object).
It seems though that your code works perfectly fine with jQuery 1.8.