At closing bell, the Dow Jones Industrial Average index advanced 46.85 points, or 0.17%, to 27,739.73. The S&P 500 index added 10.66 points, or 0.32%, to 3,385.51. The tech-heavy Nasdaq Composite Index rose 118.49 points, or 1.06%, to 11,264.95.
Stocks had opened lower on data that showed jobless claims rose unexpectedly back above the 1 million mark last week after slipping below that level for the first time since the start of the pandemic. Separate data from the Philadelphia Fed showed a business conditions index fell more than expected in August. Selling pressure waned later as the negative sentiment was partly offset by news that China and the U.S. have agreed to hold new trade talks in the coming days.
The gains were driven by some of the market's biggest companies. Apple rose a day after it became the first US-listed company to reach a $2 trillion market capitalization. Tesla also spiked, surpassing $2,000 per share for the first time. Shares of Facebook, Amazon, Netflix, Alphabet, and Microsoft rose as well, leading the broader market higher. Shares of Johnson & Johnson rose after reports that the company plans to start a coronavirus vaccine trial in September.
ECONOMIC NEWS: Philly Fed Manufacturing Index Shows Slower Growth In August- The Philly Fed manufacturing index for current activity dropped to 17.2 in August from 24.1 in July, but a positive reading still indicates growth in regional manufacturing activity, a report released by the Federal Reserve Bank of Philadelphia on Thursday showed. The bigger than expected decrease by the headline index came as the new orders index dropped to 19.0 in August from 23.0 in July and the shipments index slid to 9.4 from 15.3. The number of employees index also tumbled to 9.0 in August from 20.1 in July, indicating a slowdown in the pace of job growth. On the inflation front, the prices paid index edged down to 15.3 in August from 15.7 in July, while the prices received index inched up to 12.4 from 11.5. The Philly Fed noted respondents remained optimistic about growth over the next six months, with the diffusion index for future general activity rising to 38.8 in August from 36.0 in July.
Recovery In US Labour Market Slows As Weekly Jobless Claims Climb Back Above 1 Million- US initial jobless claims climbed to 1.106 million in the week ended August 15th, an increase of 135,000 from the previous week's revised level of 971,000. Meanwhile, the Labor Department said the less volatile four-week moving average fell to 1,175,750, a decrease of 79,000 from the previous week's revised average of 1,254,750. The report said continuing claims, a reading on the number of people receiving ongoing unemployment assistance, also tumbled by 636,000 to 14.844 million in the week ended August 8th.
Among Indian ADR, WNS Holdings added 0.21% to $65.98, INFOSYS added 0.16% to $12.82, HDFC Bank was up 1.12% to $47.72, Azure Power Global added 2.65% to $23.24, Dr Reddys Labs rose 0.08% to $59.65, and Vedanta added 2.06% to $6.95. Wipro fell 0.7% to $4.24 and Tata Motors sank 1.32% to $8.22. ICICI Bank ended steady at $10.05.
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