Gains in the financial sector and a better than-expected-reading of regional manufacturing activity gave Wall Street a boost overnight.
The Dow Jones industrial average gained 71 points to 9,350. The S&P500 Index rose 11 points to 1,007 and the NASDAQ added 20 points to 1,989.
In economic news, the Philadelphia Federal Reserve said its business activity index rose to 4.2 in August from negative 7.5 in July. Economists had been expecting another negative reading.
Other economic reports, however, were worse than anticipated. The Labor Department said claims for jobless benefits rose 15,000 to 576,000 last week. The data suggests that labor-market conditions remain difficult despite some recent signs of stabilization.
The Conference Board's index of leading indicators rose 0.6% in July, the fourth straight gain in the measure. But the reading was slightly below Wall Street's expectations.
In company news: Citigroup (NYSE:C) shares rose 8.47% at $4.48 after veteran bank analyst Richard Bove said some investors are betting the stock's price will triple in three years.
American International Group (NYSE:AIG) shares rose 21.25% to $32.30 The insurer’s newly appointed Chief Executive Robert Benmosche gave investors renewed confidence after saying AIG might be able to repay its federal debts and boost value for shareholders.
Sears Holdings (NASDAQ:SHLD) shares fell 11.88% to $65 after the department-store operator posted a surprise loss for the second quarter. Sales at stores open at least a year fell by 8.6%.
GameStop (NYSE:GME) shares fell 7.03% to $23.41. The videogame retailer posted disappointing results, saying that its earnings dropped 32% in its most recent quarter hurt by a decline in console sales.
Checking the NASDAQ Top 100: Making the most gains overnight was Patterson Companies which added 7.05% to $27.18. Dentsply International and Nvidia were the next best performers. Looking at the downside, Sear Holdings was the worst performer, followed by NetApp and Warner Chilcott.
