Wall St gains on Fed hopes; Amazon.com up after the bell

People walk along Wall Street in New York City on Oct 1, 2013. United States (US) stocks resumed their upward move on Thursday as economic data underscored views US monetary stimulus will be in place for the foreseeable future and as earnings of
People walk along Wall Street in New York City on Oct 1, 2013. United States (US) stocks resumed their upward move on Thursday as economic data underscored views US monetary stimulus will be in place for the foreseeable future and as earnings offered some upbeat news. -- FILE  PHOTO: AFP

NEW YORK (REUTERS) - United States (US) stocks resumed their upward move on Thursday as economic data underscored views US monetary stimulus will be in place for the foreseeable future and as earnings offered some upbeat news.

Shares of PulteGroup Inc jumped after the homebuilder reported results and said a slowdown in new home orders would be "short-lived". Its shares jumped 7 per cent to US$17.85 and were the biggest percentage gainer on the S&P 500, while shares of DR Horton Inc rose 2.1 per cent to US$19.87 and Beazer Homes Inc added 1.5 per cent to US$19.41.

Economic data showed initial claims for state unemployment benefits fell less than expected in the latest week, though analysts noted a backlog of applications in California. On Tuesday, data showed that employers added fewer jobs than expected in September.

The day's data also included a preliminary look at Markit's October Manufacturing Purchasing Managers Index, which grew at its slowest pace in a year while factory output contracted for the first time since late 2009.

Expectations the Fed will continue its stimulus have helped stocks all year, with the S&P 500 index up 22.8 per cent so far for 2013.

The S&P 500 declined on Wednesday, ending its four-session streak of record high finishes. Last week's legislation to avoid a debt default and end a partial government shutdown gave way to a relief rally and speculation that the Federal Reserve will delay scaling back its stimulus for several months.

"You've got this underlying liquidity surge that's propping prices up, and earnings season hasn't been poor," said Mr Bucky Hellwig, senior vice-president at BB&T Wealth Management in Birmingham, Alabama.

The Dow Jones industrial average was up 95.88 points, or 0.62 per cent, at 15,509.21. The Standard & Poor's 500 Index was up 5.69 points, or 0.33 per cent, at 1,752.07. The Nasdaq Composite Index was up 21.89 points, or 0.56 per cent, at 3,928.96.

After the bell, Twitter said it intends to sell 70 million shares priced between US$17 and US$20 in an initial public offering (IPO) that will value the company at as much as US$10.9 billion (S$13.5 billion).

Ford shares rose 1.4 per cent to US$17.76 after the automaker boosted its full-year global earnings and margin outlook, helped by an improved forecast in Europe and better-than-expected third quarter results.

Also on the rise were Apple shares, up 1.3 per cent at US$531.91, after investor Carl Icahn, in a public letter to Apple chief executive Tim Cook, called on Apple to commence a US$150 billion share buyback immediately.

Third-quarter earnings overall has had its disappointments, including some weak outlooks and just 53 per cent of companies so far beating analysts' revenue expectations, below the long-term average of 61 per cent, according to Thomson Reuters data.

About 68 per cent of companies are beating analysts' earnings expectations, above the 63 per cent long-term average.

Among the day's decliners were Dow Chemical Co, Xerox Corp and AT&T Inc, which all fell following results or outlooks.

AT&T, a Dow component, fell 1.8 per cent to US$34.63 while Dow Chemical lost 1 per cent to US$40.62. Xerox slumped 10.4 per cent to US$9.61 after a weak outlook.

Shares of Symantec Corp dropped 12.7 per cent to US$21.49 after it reported lower-than-expected second-quarter revenue and forecast current-quarter results below expectations.

Also after the bell, shares of both Amazon.com and Microsoft jumped after posting results. Amazon.com gained 7.8 per cent to US$358.10 after it posted a narrower quarterly loss and stronger-than-expected sales.

Shares of Microsoft rose 5.6 per cent to US$35.60 after its profit rose more than expected.

DuPont shares climbed 3 per cent to US$63.20 after the bell. The company said it will spin off its titanium dioxide unit and related businesses.