US stocks have increased as investors digest a batch of economic data that suggests the recovery is picking up steam.
At the closing bell on Thursday, the Dow Jones Industrial Average was up 58.66 points (0.44 per cent) to 13,252.76.
The broad-market S&P 500 added 8.32 (0.60 per cent) to 1,402.60, while the tech-heavy Nasdaq Composite gained 15.64 points (0.51 per cent) to 3,056.37.
Some positive data buoyed confidence in the economy.
Weekly jobless claims held onto their downward trajectory, while surveys of manufacturing in New York and the mid-Atlantic region showed activity continuing to rise.
Meanwhile the producer price index for February jumped as expected, to a 0.4 per cent rise on the month, driven by higher fuel prices.
The year-on-year rise of 3.3 per cent was lower than the previous two months and more encouraging. Analysts said they were now less worried about inflation and more about the impact of rising oil prices on the economy.
“Although higher oil prices push up the headline (inflation data), they also squeeze real spending power. Their threat to growth is more troubling than their threat to inflation,” said economist Nigel Gault of IHS Global Insight.
Bank of America shares led the Dow blue chips higher, adding 4.5 per cent to $9.24, after a three-day gain of 15.6 per cent upon passing the US Federal Reserve’s tough stress test.
JPMorgan Chase, which also cleared the stress test, added 2.6 per cent for a 10.3 per cent rise overall since the results began coming out on Tuesday.
Railway operator Union Pacific shares surged five per cent as the company made promotions to key management positions to fill the vacuum left when chief executive Jim Young took medical leave for cancer treatment.
Apple’s price momentarily surged above the $600 line by a bare one cent, one day ahead of its release of the newest iPad model and a day after two key analysts pushed their price targets for the tech giant to over $700.
At the close, Apple shares were down 0.7 per cent at $585.56.
Bond prices were generally flat. The yield on the 10-year Treasury edged up to 2.28 per cent from 2.27 per cent Wednesday, while the 30-year held steady at 3.41 per cent.
Bond prices and yields move in opposite directions.
