New York - US stocks jumped on
Thursday as companies across a wide swath of the economy reported strong
earnings and existing home sales fell less sharply than forecast,
easing fears of a double-dip recession.
Caterpillar
gained 2.1% to $68.33 after reporting a better-than-expected
profit and raising its outlook, citing strong growth in emerging
markets.
Profit jumped 43% at diversified manufacturer 3M
on strong demand in emerging markets. The stock rose 3% to
$84.74 and was the top boost on the Dow.
Package
deliverer United Parcel Service,
considered an economic bellwether, advanced 6.5% to $63.93 after
its profit rose sharply and it raised its full-year outlook.
Wall Street, which opened up more than 1%, extended gains after an industry group said US existing home
sales fell to a three-month low in June, but the supply of unsold homes
rose to the highest level in almost a year.
"Home
sales data was great. On an absolute basis, it's (bad), but, man, it is in the right direction and certainly crunched consensus, and that is great news," said Burt White, managing director and chief investment officer at LPL Financial in Boston.
"You've got a bunch of great earnings reports, revenues are hanging in there pretty well, and other than the Bernanke bummer yesterday, the mood is definitely looking up."
The Dow Jones industrial average gained 215.92 points, or 2.13%, to 10,336.45. The Standard & Poor's 500 Index climbed 25.32 points, or 2.37%, to 1 094.91. The Nasdaq Composite Index rose 58.10 points, or 2.66%, to 2 245.43.
The Dow Jones Transportation Average rose 4.3%, helped by UPS as well as Union Pacific up 5% to $72.63. The No. 1 US railroad's results topped expectations.
The PHLX Housing Sector index surged 4.3% on the housing data, with Lennar Corp rising 5.4% to $15.09.
Earlier on Thursday, data showed weekly jobless claims rose by 37 000 to 464 000, worse than the forecast of 445 000, although continuing claims were lower than expected.
- Reuters