By Saumya Vaishampayan and Chris Dieterich
U.S. stocks inched higher on Thursday, bolstered by strong
labor-market data and corporate-earnings reports.
The Dow Jones Industrial Average added 24 points, or 0.1%, to
17110.
The S&P 500 rose two points, or 0.1%, to 1988 and the Nasdaq
Composite Index climbed 10 points, or 0.2%, to 4483. Both indexes
were on course for their third straight day of gains.
Stocks rose after Americans filed the fewest applications for
unemployment benefits last week since February 2006. Initial
jobless claims fell to 284,000, well below expectations for
305,000.
Investors also focused on quarterly corporate results. Early
reports have been mostly positive; analysts have revised higher
their estimates for earnings increases among S&P 500 companies,
now expecting a gain of 5.6% versus 4.9% previously, according to
FactSet.
Facebook jumped 6.9% after the social network reported that
profit more than doubled and revenue topped estimates late on
Wednesday. Facebook's strong report showed that the company was
successfully navigating the shift to mobile advertising as it
continues to add users.
Caterpillar fell 2.8% after earnings topped analysts'
expectations, but revenue came up short. The company pointed to
weaker sales in China, Africa and the Middle East and tightened the
range of its revenue estimates.
Results "in general have been great," said Kent Engelke, chief
economic strategist at Capitol Securities Management. "More
importantly, we're also having optimistic forward-looking
statements" on earnings growth, he said.
Ford Motor rose 1.3% after the car maker beat earnings
expectations, reporting strength in North America, Europe and
Asia.
General Motors slumped 1.8% after its profit sank 80% as the
auto maker was hit by recalls.
Shortly after the opening bell, new home sales in June are
expected to decline to 478,000 from 504,000 a month earlier.
Separately, manufacturers located near the Kansas City Federal
Reserve Bank are due to post a July survey results on economic
conditions.
A modest start for U.S. stocks followed gains overseas.
The Stoxx Europe 600 rose 0.4%, buoyed by data showing that
private-sector activity in the euro zone expanded faster than
expected in July. The composite purchasing managers index for the
region, which measures manufacturing and service-sector activity,
rose to a three-month high of 54.
The Chinese manufacturing sector rose for the second month in a
row in July, with the HSBC preliminary, or "flash," manufacturing
PMI rising to 52 from 50.7 a month earlier, reaching an 18-month
high. China's Shanghai Composite rose 1.3%, while Japan's Nikkei
Stock Average fell 0.3%.
Yields on benchmark 10-year U.S. Treasury notes rose to 2.495%,
from 2.464% late on Wednesday. Gold futures fell 0.6% to $1,297.60
a troy ounce. Crude-oil futures lost 0.1% to $103.00 a barrel. The
dollar lost some ground against the euro but rose versus the
yen.
Under Armour Inc. added 12% after the company reported that
strong footwear and apparel sales buoyed its second-quarter
results, and the company again raised its outlook for full-year
sales.
Qualcomm fell 5.3% after the wireless-tech company noted some
worries about licensees in China, even as it lifted its full-year
adjusted earnings outlook.
Write to Saumya Vaishampayan at saumya.vaishampayan@wsj.com and
Chris Dieterich at christopher.dieterich@wsj.com