US stocks rose overnight to their highest levels of this year, led by the telecom and energy sectors. Strong demand for the sale of 30-year Treasury bonds also lifted investor confidence.
The Dow Jones industrial average rose 80 points to 9,627. The S&P500 Index added 11 points to 1,044 and the NASDAQ lifted 24 points to 2,084.
In economic news: The Labor Department reported that the number of Americans filing new claims for unemployment fell by 26,000 last week to 550,000. Continuing claims for unemployment benefits fell to 6,080,000 from 6,234,000 in the previous week.
The Commerce Department reported the US trade gap has widened to $32 billion in July from $27.5 billion in June. Economists thought it would get smaller.
According to RealtyTrac foreclosure filings fell by 0.5% in August from July, while the number of homes that were repossessed from borrowers fell by 12.7% in August. In company news: Procter & Gamble (NYSE:PG) shares gave the Dow its biggest lift, climbing 4.24% to $56.04 after the company reaffirmed its earnings forecast for the current quarter and said sales would improve in the next quarter.
Texas Instruments (NYSE:TXN) shares fell 0.56% to $25 and that was despite the technology maker boosting its sales outlook in a sign that consumers are spending cash again.
Monsanto (NYSE: MON) shares dropped 5.01% to $79.30 as the world's leading seed maker disappointed investors by saying it expects 2010 earnings in a range that’s well below analysts' estimates, due in part to an excess supply of herbicide.
Morgan Stanley (NYSE:MS) shares added 0.32% to $28.64 after the investment bank's Chief Executive John Mack announced he’s stepping down and will be replaced by one of the firm’s co-presidents James Gorman.
Checking the NASDAQ Top 100: Flextronics made the most gains overnight adding 5.46% to $6.57. Lam Research and Yahoo also advanced. On the downside, Electronic Arts fell 2.59% to $18.05, while Vertex Pharmaceuticals and Urban Outfitters also closed weaker.
