US stocks jump on US growth data, extending global rally

Wall Street stocks rose early today as strong US growth data helped to extend a global rally led by big gains in Chinese markets.
About 40 minutes into trade, the Dow Jones Industrial Average was up 176.91 points (1.09 per cent) at 16,462.42.
The broad-based S&P 500 gained 23.76 (1.22 per cent) at 1,964.27, while the tech-rich Nasdaq Composite Index advanced 61.83 (1.32 per cent) to 4,759.37.
The gains in the US extended yesterday's big rally, which snapped a six-day losing streak.
Earlier today, the Shanghai market, whose plummet unleashed the global sell-off of the last 10 days, soared 5.34 per cent. Exchanges in London, Frankfurt and Paris were up around three per cent.

The rally was given further support by US data showing the economy grew at an annual rate of 3.7 per cent in the second quarter, much higher than the 2.3 per cent initially estimated.

All 30 members of the Dow rose, with oil producers Chevron (+2.9 per cent) and ExxonMobil (+2.2 per cent) among the bigger gainers.
Other petroleum-linked stocks also surged on higher oil prices. Driller Nabors Industries jumped 7.4 per cent, EOG Resources gained 4.9 per cent and ConocoPhillips added 4.2 per cent.
High-flying technology stocks also prospered, including Facebook (+2.4 per cent), Netflix (+5.6 per cent) and Tesla Motors (+5.7 per cent).

Tiffany fell 1.1 per cent as it projected full-year earnings would drop between two and five per cent from last year's USD 4.20 per share, in part due to the strong dollar. Analysts had estimated the upscale jewelry retailer would make USD 4.26 for the year.
Metals and oil producer Freeport-McMoRan powered 18.3 per cent higher as it announced deep cuts to its capital budget in light of weak commodity prices. Freeport now expects to spend USD 4 billion in 2016, down 29 per cent from its estimate a month ago.
PVH, which owns the Tommy Hilfiger and Calvin Klein apparel brands, rose 4.5 per cent as it lifted its full-year profit forecast to USD 6.90-USD 7.00 per share, five cents above the prior range.

Budget supermarket chain Dollar General lost 3.0 per cent as second-quarter sales came in just under USD 5.1 billion, lagging analyst expectations for USD 5.14 billion.
Bond prices were mixed. The yield on the 10-year US Treasury rose to 2.20 per cent from 2.18 per cent yesterday, while the 30-year held steady at 2.94 per cent. Bond prices and yields move inversely.