By Kate Gibson, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks rose Thursday, with the
Dow industrials rebounding from their longest slide in more than a
year, amid upbeat economic reports both in the U.S. and
overseas.
"The economy is not at this point looking like it's going into a
recession. It is certainly not booming, and that is the quandary
the Fed has and why the taper is such a big deal," said Paul Nolte,
managing director at Dearborn Partners in Chicago, referring to
signals from the Federal Reserve that it would curb its $85 billion
in monthly bond purchases before the end of the year.
"The question now being asked is how much and when, and the Fed
has left that very open," he added.
The Dow Jones Industrial Average (DJI) advanced 49.53 points, or
0.3%, to 14,947.08.
Energy and industrials paced sector gains on the S&P 500
index (SPX), up 11.35 points, or 0.7%, at 1,654.15.
The Nasdaq Composite (RIXF) gained 33.88 points, or 0.9%, to
3,633.63.
For every share declining, roughly five gained on the New York
Stock Exchange, where 185 million shares traded as of 11:15 a.m.
Eastern. Composite volume neared 962 million.
Stocks on Wednesday finished sharply lower as investors weighed
the Federal Reserve's signaling that is remained on course to curb
its monthly bond purchases by the end of the year.
On Thursday, Hewlett-Packard Co. (HPQ) declined 13% after the
Dow component and personal-computer maker's quarterly profit
outlook disappointed.
GameStop Corp. (GME) rallied 11% after the videogame retailer
raised its 2013 profit outlook. The stock was the biggest S&P
500 gainer.
Abercrombie & Fitch Co. (ANF) sank 17%, making it the worst
S&P 500 performer, after the retailer reported second-quarter
earnings beneath market expectations.
Applications for jobless benefits fell to a more-than five-year
low during the past month, illustrating continuing improvement in
the U.S. labor market, the government reported.
Separate data had U.S. house prices climbing 7.7% year-over-year
in June, and up 0.7% from May, the Federal Housing Finance Agency
said.
The Conference Board's index of economic indicators rose 0.6% in
July to 96.0, slightly above estimates.
Economic reports from overseas had Germany pacing gains in
manufacturing and services in the euro zone, and a measure of
factory productivity expanded in China.
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