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US stocks rise on strong economic data

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US stocks have closed higher, helped by data showing more strength and confidence in the US economy and as worries eased over a credit crunch in China.

The Dow Jones Industrial Average gained 100.75 (0.69 per cent) at 14,760.31 on Tuesday.

The broad-based S&P 500 added 14.94 (0.95 per cent) at 1,588.03, while the tech-rich Nasdaq Composite Index rose 27.13 (0.82 per cent) to 3,347.89.

While bond yields continued to push higher, investors focused on signs that the US economic growth was firming.

New orders for durable goods surged 3.6 per cent in May on the back of aircraft sales, and housing prices added a huge 2.5 per cent in one month.

In addition, the Conference Board’s consumer confidence index jumped to 81.4, up from 74.3 in May.

After weeks of selling in spite of signs of stronger growth, “we may be at a point were good news is good news,” said Art Hogan of Lazard Capital Markets.

Troubled bookseller Barnes & Noble plunged 17.1 per cent after it reported a $US119 million ($A129.31 million) loss in its fiscal fourth quarter, compared with $US57 million a year earlier, with its Nook tablet division racking up $US177 million in red ink.

Walgreens shares sank 5.9 per cent after the drugstore chain missed revenue and earnings estimates in its fiscal third quarter earnings.

“Our front-end sales are still not up to our expectations, and while the economy remains challenging, increasing customer traffic and front-end sales are our near-term priorities with a focus on pricing and promotion and the leveraging of our Balance Rewards program,” said Greg Wasson president and chief executive.

Sprint shares were up 0.3 per cent after shareholders gave their approval to Japanese firm SoftBank’s takeover bid. Broadband carrier Clearwire, part-owned by Sprint and also targeted by SoftBank in its US wireless strategy, rose 0.4 per cent.

Trouble-plagued cruise ship operator Carnival rose 5.0 per cent after chief executive and chairman Micky Arison gave up his CEO position after holding the job for 34 years.

Bond prices continued to sink. The yield on the 10-year US Treasury rose to 2.59 per cent from 2.55 per cent on Monday, while the 30-year increased to 3.61 per cent from 3.56 per cent. Bond prices move inversely to yields.