US stocks rallied overnight following an otherwise choppy session as investors welcomed JP Morgan Chase's better-than-expected profit report and geared up reports from tech leaders after the close.
The Dow Jones industrial average rose 96 points to 8,712. The S&P500 Index added 8 points to 941 and the NASDAQ rose 22 points to 1,885. In economic news: The Labor Department reported the number of Americans filing new claims for unemployment benefits fell to 522,000 last week, a six-month low.
The Philadelphia Fed index, which is a regional reading on manufacturing, fell to negative 7.5 in July from negative 2.2 in June. Economists had been expecting a better result.
And a report from RealtyTrac showed that a record 1.53 million homes are in foreclosure this year.
In company news:JP Morgan Chase (NYSE:JPM) shares lost 0.36% to $36.13 after the bank reported a profit of $2.7 billion, blitzing forecasts. The bank said investment banking and trading drove a 36% jump in quarterly profit despite a surge in credit card and loan losses.
Cit Group (NYSE:CIT) shares plunged 75.15% to 41 cents amid fears the small business lender is creeping closer to bankruptcy as the news continues to sink in that it won’t be receiving a government bailout.
IBM (NYSE:IBM) shares gained 3.19% to $110.64 the computer and software maker provided the Dow's biggest boost ahead of earnings that beat expectations after the market closed. The company also raised its outlook for the full year.
Apple (NASDAQ:APPL) shares rose 0.44% to $147.52 after the iPhone maker closed a loophole in its iTunes program that had allowed the music management software to be synchronized with rival Palm's Pre phone
Checking the NASDAQ Top 100.The standout performer overnight was Liberty Global which added 5.91% to $17.73. Nvidia and Steel Dynamics posted similar gains. On the downside, the worst performer was Cintas, which fell 2.51% to $22.54. First Solar and Flextronics also closed weaker.
