News from AAP

US stocks close higher after upbeat economic data

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US stocks have made modest gains as durable goods orders and weekly unemployment claims came in better than expected and Procter & Gamble earnings beat forecasts.

The Dow Jones Industrial Average climbed 26.34 points (0.20 per cent) to 13,103.68.

The broad-based S&P 500 advanced 4.22 (0.30 per cent) to 1,412.97, while the Nasdaq Composite added 4.42 point (0.15 per cent) at 2,986.12.

The Dow, after opening solidly higher, dropped into the red around midday and clawed its way back to a positive finish.

Sentiment was “supported by some data from the US equity and economic fronts. Dow member Procter & Gamble Co reported stronger-than-expected earnings despite a decline in revenues,” Charles Schwab & Co analysts said.

P&G led the Dow higher, jumping 2.9 per cent. Boeing was the biggest blue-chip laggard, down 1.6 per cent.

Cliff’s Natural Resources, which deals in iron ore and coal, sank 10.5 percent on its drop in third-quarter profit and sharp miss of analysts’ expectations.

ConocoPhillips rose 2.2 per cent; the company’s 31 per cent fall in earnings came in much better than forecasts.

Shares of United Airlines parent United Continental Holdings dived nearly 5.0 per cent after it reported a 99 per cent fall in quarterly profits, citing chargeoffs for special labour costs and integrating Continental Airlines into the company.

Electronics retailer Best Buy lost 10.3 per cent as it issued a warning that third-quarter profit would fall “significantly”. The company, challenged by online sales, also announced a management shakeup.

Colgate-Palmolive, which also reported earnings and a plan for layoffs, fell 1.8 per cent.

Ford Motor rose 2.2 per cent after the car manufacturer announced the closure of two British plants as part of a restructuring to steer its European operations back to profit.

Pandora Media tumbled 11.7 per cent on rumours that Apple may launch a rival online radio service. The shares had plunged more than 20 per cent in several minutes, triggering a temporary halt on trading.

Bond prices retreated. The yield on the 10-year US Treasury rose to 1.83 per cent from 1.76 per cent late Wednesday, while the 30-year climbed to 2.98 per cent from 2.93 per cent.

Bond prices move inversely to yields.