US stocks rose on a late rally that came despite disappointing US economic data, as gains in the euro after a successful Spanish bond auction helped lift companies that export to Europe, including Caterpillar, Kraft and Chevron.
The Dow Jones Industrial Average rose 24.71 points (0.24%) to 10,434.17, its highest close since May 19. The measure is now up 0.06% for the year. Caterpillar was among the top blue-chip performers with a jump of 56 cents (0.9%) to $64.95. Kraft was also strong with a gain of 25 cents (0.8%) to $29.98, while Chevron climbed 37 cents (0.5%) to $75.32.
The Nasdaq Composite rose 1.23 (0.05%) to 2,307.16, its sixth close in the black. That represents the measure's longest winning streak since a six-day run that ended on the 15th of April. It is now up 1.68% for the year.
The Standard & Poor's 500 index advanced 1.43 (0.13%) to 1,116.04. It is up 0.08% for the year.
The gains came despite an unexpected rise in weekly jobless claims, a bigger-than-expected drop in the Federal Reserve Bank of Philadelphia's June index of business activity for factory operators in the Mid-Atlantic area, and a smaller-than-expected increase in the Conference Board's index of leading economic indicators.
JM Smucker jumped $3.80 (6.6%) to $61.55. The food company's fiscal fourth-quarter earnings rose 28%, smashing analysts' estimates while sales edged higher. The company also provided guidance for the new year above analysts' expectations.
Kroger rose 67 cents (3.3%) to $20.75 after the supermarket operator's fiscal first-quarter earnings came in above analysts' expectations. The results helped lift the shares of other supermarkets, with Supervalu up 76 cents (6.1%) to $13.24, and Safeway up 37 cents (1.7%) to $21.65.
Aetna rose $1.31 (4.5%) to $30.63. The health insurer disclosed ahead of an investor conference that it expects second-quarter earnings to top analysts' average estimate on better-than-expected underwriting margins from lower health-care costs.
Exco Resources fell $1.13 (6%) to $17.84, after the company agreed to buy $355m of East Texas oil and natural-gas assets from Southwestern Energy. The companies said the deal for oil and gas leases, wells and gathering equipment should close by the end of the month. Exco will pay for it with borrowings under its credit facility. Southwestern slipped 11 cents (0.3%) to $44.57.
IHS rose $3.58 (6.4%) to $59.15. The data provider and consultant's fiscal second-quarter profit increased 20% on higher revenue partly because of the move of its annual executive conference to the second quarter from the first, when it was held in recent years. The company also raised its fiscal-year adjusted earnings forecast.
For Australian ADRs listed on the NYSE, BHP Billiton lost 44 cents (0.65%) to US$67.03, Rio Tinto Plc dipped 38 cents (0.77%) to US$49.20, ResMed declined 76 cents (1.16%) to US$64.70, Telstra Corporation firmed 11 cents (0.81%) to US$13.76, Telecom Corporation of NZ slid 11 cents (1.63%) to US$6.62 and Westpac slipped 70 cents (0.69%) to US$101.03.
In economic news, unemployment claims rose in construction, manufacturing and educational services, while consumer prices fell a second straight month during May, both signs of a fitful economic recovery, according to new government reports.
At 7:45 AM (AEST), the 10-year Treasury note yield was 3.19% and the five year yield was 1.99%.
European shares barely extended a winning run to a seventh session on Thursday, as a reasonably successful Spanish bond auction and a recovery for oil giant BP helped compensate for poorly received US economic reports.
Finishing at the highest level since May 13, the Stoxx Europe 600 index edged up 0.1% to 254.66, as a winning run has added 6% to the stock market benchmark.
Retreating worries about euro-zone sovereign debt have contributed to the advance, and on Thursday, Spain's 3.5bn euro bond auction proceeded smoothly.
The news helped the Stoxx 600 out of early doldrums and also boosted the euro, which was 0.5% stronger when European markets closed.
As markets closed, European Council President Herman Van Rompuy said stress tests on European banks will be published in July. Banks ranked among the strongest performers on Thursday, with Natixis rising 2.8% and Santander gaining 1.7%.
Of the major regional indexes, the French CAC-40 index rose 0.2% to 3,683.08, the UK's FTSE 100 index advanced 0.3% to 5,253.89 and the German DAX index gained 0.5% to 6,223.54.
Shares of BP jumped 6.7% to 360 pence in London, paring year-to-date losses to 40%, after the oil giant announced a $20bn escrow fund to compensate those affected by the two-month-old Gulf of Mexico spill and a suspension of dividend payments.
Back in the banking sector, UBS shares gained 1.4%. Swiss lawmakers reached a last-minute deal that will allow the names of nearly 4,500 UBS clients and suspected tax-evaders to be handed to US authorities and should help the bank avoid further sanctions.
Domestic rival Credit Suisse slipped 0.2%. Switzerland's central bank said in its annual financial stability report that both banks continue to face high credit and market risks and have elevated leverage.
At the same time, the Swiss National Bank toned down language regarding intervention in the foreign-exchange market designed to halt the euro's slide and the Swiss franc extended a gain on the euro.
On the FTSE 100, Rio Tinto slipped 19.00 pence (0.57%) to 3,332.51 pence and BHP Billiton weakened 9.50 pence (0.49%) to 1,921.00 pence.
Asian stock markets saw a mixed finish after a choppy session on Thursday. Exporters forced a retreat in Tokyo for the first time in six sessions, but energy stocks led the Hong Kong market higher on strong crude prices.
Sentiment was muted and trading volumes were weak in some markets. Stocks were also pressured as investors locked in some of the strong recent gains after a larger-than-expected drop in US housing starts and on concerns over Spanish debt problems.
Japan's Nikkei Stock Average fell 0.7%, while China's Shanghai Composite fell 0.4%. Hong Kong's Hang Seng Index added 0.4%.
New Zealand shares ended lower, dragged down by Telecom, which fell on media reports that cellphone rates could be slashed if the government adopts some new regulations. The NZX-50 Index fell 0.7%, or 21 points, to 3,045.72.
Copper on the London Metal Exchange ended sharply lower on worries of oversupply in China and an unexpected jump in US jobless claims. Aluminium fell $55 (2.74%) to $1,950 while copper weakened $200 (3.00%) to $6,460 and nickel dropped $350 (1.75%) to $19,600. Zinc shed $50 (2.76%) to $1,760 and lead remained unchanged at $1,760. Comex copper was last quoted at 292.20 US cents per pound.
Gold futures settled at another record high, continuing an upward trend as investors sought refuge following negative US economic data. Spot gold was last quoted at $1,244. Comex gold futures added $18.20 (1.48%) to $1,248.70. Spot silver was last quoted at $18.67.
Crude oil settled lower as a three-day rally was snapped on concerns over near-term oversupply and disappointing US economic data. West Texas Intermediate was last quoted at US$76.79 per barrel.
At 07:45 a.m. (AET) the US dollar was quoted at 0.8079 euros, 90.92 yen, 1.153 AUD and 67.49 pence.