- Source: BBC
Wall Street climbed as the latest US labour data underpinned the recent string of evidence that the jobs market continues its recovery, while the latest manufacturing data from the US, China and Germany suggested the world's key economies are improving.
Initial claims for state unemployment benefits rose 13,000 to 336,000 in the week ended August 17, according to Labor Department data. The four-week moving average for claims fell to the lowest level since November 2007.
“The employment numbers were encouraging and showed a continuation of slow growth in employment,” Paul Mangus, head of equity strategy and research for Wells Fargo Private Bank in Charlotte, North Carolina, told Bloomberg News.
Meanwhile, Markit's preliminary index on factory activity rose to 53.9 in August, up from 53.7 in July and climbing to the highest level in five months.
“The US manufacturing sector saw only modest growth of production in August, suggesting that the economy is continuing to recover in the third quarter but that the pace of expansion remains disappointingly sluggish," Chris Williamson, chief economist at Markit, said.
“Hopefully the faster growth of new orders seen during August will translate into increasingly strong production gains in coming months, and also boost hiring."
In late afternoon trading in New York, the Dow Jones Industrial Average climbed 0.41%, while the Standard & Poor's 500 Index rose 0.76%. Trading on the Nasdaq was halted at about midday because of a software glitch.
Curbing the Dow's advance was a plunge in shares of Hewlett-Packard, last down 12%, as the company's latest quarterly earnings as well as its outlook fell short of the mark.