US stocks up on data, may end six-day losing streak

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US stocks rose in morning trading on Wednesday, helped by stronger-than-expected durable goods data, raising hopes that Wall Street will snap its six-day losing streak.

Although stocks were off their highs by late morning, all 10 major S&P 500 sectors were up, led by the technology index's 2.6 per cent gain.

Apple Inc provided the biggest boost to the three major US indexes.

Durable goods orders rose two per cent in July, compared with analysts' average forecast of a four per cent fall. Orders for core capital goods, a proxy for business investment, rose 2.2 per cent - their biggest gain in 13 months..

The data suggested US economy was in good shape.

Wednesday's gains followed a dramatic day of trading on Tuesday, when the three main indexes reversed course suddenly to close sharply lower amid lingering worries about slowing growth in China.

"I think today's early rally is because nothing particularly bad happened overnight and while everyone is looking at China very nervously, Wednesday's data showed the US is growing," said Kim Forrest, senior equity research analyst at Fort Pitt Capital Group in Pittsburgh.

The stronger durable goods data appeared to improve the case for a US interest rate increase in September.

However, New York Fed President William Dudley said an interest rate rise next month seems less appropriate given the recent global market turmoil.

At 15:17 GMT, the Dow Jones industrial average was up 261.56 points, or 1.67 per cent, at 15,928, the S&P 500 was up 30.83 points, or 1.65 per cent, at 1,898.44, and the Nasdaq Composite was up 75.83 points, or 1.68 per cent, at 4,582.32.

All 30 stocks in the Dow were up.

Up to Tuesday's close, the Dow had lost 10.71 per cent in the past six trading days, while the S&P 500 dropped 11.71 percent and the Nasdaq composite 11.5 per cent.

The S&P 500 rose as much as 2.9 per cent on Tuesday before closing down 1.35 per cent, while the Dow rose as much as 2.8 per cent before closing down 1.29 per cent. The Nasdaq rose as much as 3.6 per cent before ending down 0.44 per cent.

The Shanghai Composite Index ended down for the fifth straight day, underscoring fragile confidence and deep doubt over whether the Chinese central bank's cuts in interest rates and reserve ratios on Tuesday could stabilise the economy.

The dollar index, which touched a seven-month low earlier in the week, was up 0.13 per cent after the US data. Treasury prices fell.

Google shares were up 4.5 per cent at $640 after Goldman Sachs raised its rating to "buy" from "neutral" and added it to its conviction buy list.

Cameron International soared 41.2 per cent to $59.94 after Schlumberger, the world's No 1 oilfield services company, said it would buy the oilfield equipment maker in a $14.8 billion deal. Schlumberger fell 4.8 per cent to $69.08.

Abercrombie & Fitch jumped 13.1 per cent to $19.53 after the teen apparel retailer reported better-than-expected quarterly sales.

Advancing issues outnumbered decliners on the NYSE by 2,026 to 959. On the Nasdaq, 1,646 issues rose and 1,033 fell.

The S&P 500 index showed no new 52-week highs and 22 new lows, while the Nasdaq recorded three new highs and 85 new lows.