By Tanya Agrawal
(Reuters) - Wall Street was higher in early afternoon trading on Thursday as Apple and biotech shares lifted the market ahead of the crucial Federal Reserve meeting next week.
U.S. stocks have been volatile for the past few weeks since China devalued its currency in August and the impact of a slowdown in the region on global growth rattled investors. The S&P 500 has seen moves of about 1 percent in the past few weeks.
"Volatility is here to stay for the rest of the fourth quarter because even if the Fed doesn't raise rates next week, it is signalling that there is weakness in the economy," said Mohannad Aama, managing director at Beam Capital Management in New York.
Apple's 2.1 percent rise gave the biggest boost to the three major indexes a day after the iPhone maker unveiled new offerings.
Gilead's 4 percent was the second-biggest boost on the S&P and the Nasdaq. The Nasdaq biotechnology index <.NIB> was up about 2 percent.
More From This Section
U.S. Bank Wealth Management said equities will remain range-bound until the September meeting, after which investor focus will quickly shift toward third-quarter earnings and the outlook for 2016.
"Earnings growth is paramount to supporting higher stock prices."
At 12:50 ET (1650 GMT) the Dow Jones industrial average was up 93.24 points, or 0.57 percent, at 16,346.81, the S&P 500 was up 12.42 points, or 0.64 percent, at 1,954.46 and the Nasdaq Composite was up 43.71 points, or 0.92 percent, at 4,800.24.
Nine of the 10 major S&P sectors were higher with the health index's <.SPXHC> 0.95 percent rise leading the advancers.
Global markets were under pressure after data showed a drop in producer prices and car sales in China and slowing capital spending in Japan.
"We need to see more positive government action from China. They have all these levers to pull which they aren't even as data gets more negative," said Art Hogan, chief market strategist at Wunderlich Securities.
Adding to the downward pressure, influential fund manager David Tepper of Appaloosa Management told CNBC that corporate earnings may not rise as much as expected and he was not overly bullish on stocks next year.
Data released on Thursday showed the number of Americans filing new applications for unemployment benefits fell last week, suggesting a moderation in job growth in August was an aberration. Initial claims fell by 6,000 to 275,000.
Krispy Kreme Doughnuts fell 11.8 percent to $15.64, a day after the doughnut chain cut its 2016 profit forecast.
Lululemon Athletica was down 13.9 percent at $55.12 after the yogawear retailer's gross margins continue to be under pressure as it spends more on product development and sourcing.
Advancing issues outnumbered decliners on the NYSE by 1,868 to 1,088. On the Nasdaq, 1,712 issues rose and 989 fell.
The S&P 500 index showed 1 new 52-week high and 6 new lows, while the Nasdaq recorded 18 new highs and 40 new lows.
(Reporting by Tanya Agrawal; Editing by Don Sebastian)