U.S. stocks posted solid gains Thursday, as Wall Street assessed mixed economic data and positive earnings reports from big banks.
The Dow Jones Industrial Average gained 217.00 points, or 1.28 percent, to 17,141.75. The S&P 500 jumped 29.62 points, or 1.49 percent, to 2,023.86. The Nasdaq Composite Index spiked 87.25 points, or 1.82 percent, to 4,870.10.
The U.S. Consumer Price Index for all urban consumers decreased 0.2 percent in September on a seasonally adjusted basis, in line with market consensus, the Labor Department reported Thursday.
The index for all items less food and energy (core CPI) increased 0.2 percent in September after rising 0.1 percent in July and August. The core CPI has risen 1.9 percent over the past 12 months. "While it may look like core inflation is moving towards that desired 2.0-percent mark with this report, the mix is not necessarily what the Fed expected," said Sophia Kearney-Lederman, an economic analyst at FTN Financial.
In a separate report, the department announced that in the week ending Oct. 10, the advance figure for seasonally adjusted initial jobless claims decreased 7,000 from the previous week's revised level to 255,000, below market estimates.
Meanwhile, the October 2015 Empire State Manufacturing Survey indicates that business activity declined for a third consecutive month for New York manufacturers. The headline general business conditions index edged up 3 points, but remained negative at minus 11.4. Some analysts thought that the mostly soft economic data supported the case for a rate hike delay.
In corporate news, shares of Citigroup Inc. surged 4.44 percent to 52.97 dollars apiece Thursday after the company delivered better-than-expected quarterly results. The bank reported net income for the third quarter 2015 of 4.3 billion U.S. dollars, or 1.35 dollars per diluted share, on revenues of 18.7 billion dollars. The Goldman Sachs Group, Inc. jumped 3.04 percent to 184.96 dollars apiece Thursday after posting quarterly earnings above estimates but revenues shy of forecast.
Overseas stock markets also increased broadly Thursday.
European equities ended sharply higher, with French benchmark index CAC 40 rising 1.44 percent, as investors shrugged off the downturn in oil prices.
In Asia, Chinese benchmark Shanghai Composite Index soared 2.32 percent on improving sentiment and expectation of more growth-supportive policies.
The CBOE Volatility Index, often referred to as Wall Street's fear gauge, fell 6.69 percent to end at 19.54. In other markets, oil prices retreated as U.S. crude stockpiles increased more than expected. The West Texas Intermediate for November delivery moved down 26 cents to settle at 46.38 dollars a barrel on the New York Mercantile Exchange, while Brent crude for November delivery decreased 44 cents to close at 48.71 dollars a barrel on the London ICE Future Exchange.
The U.S. dollar decreased against most major currencies as the economic data from the country came out mixed. In late New York trading, the euro fell to 1.1384 dollars from 1.1478 dollars in the previous session, while the dollar bought 118.78 Japanese yen, lower than 118.82 yen of the previous session.
Gold futures on the COMEX division of the New York Mercantile Exchange as technical trading gave support to the precious metal after the release of inflation data. The most active gold contract for December delivery moved up 7. 7 dollars, or 0.65 percent, to settle at 1,187.50 dollars per ounce.
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