Wall Street snaps 3-day losing streak, Tesla soars

By Ryan Vlastelica

NEW YORK (Reuters) - U.S. stocks rose on Thursday, snapping a three-day string of losses as positive data from around the world gave investors a reason to buy, while Tesla soared following its results.

Still, stocks are down for the week, having pulled back from record levels on concerns the Federal Reserve will start to reduce its stimulus efforts this year as the economy recovers. Gains in equities have been closely tied to the Fed's stimulative policy, and many investors are concerned economic growth may lose steam without the Fed's help.

"I'm not convinced that concerns about the Fed have been fully priced in, but we are seeing a bit of a bounce back today, and the bulls remain firmly in control of the market for now," said Uri Landesman, president of Platinum Partners in New York.

 

On the data front, U.S. weekly jobless claims rose less than expected to 333,000 in the latest week. Overseas, China's July exports rose 5.1 percent, topping expectations and spurring hope the world's second-largest economy might be stabilizing after more than two years of slowing growth

"The news today is enough to spark some interest, and it is really making the vast majority of the global market optimistic," said Landesman.

Shares of Tesla Motors Inc jumped 13.5 percent to $152.30 a day after the electric car maker posted an unexpected quarterly profit. The stock has been a major momentum favorite this year, up almost 350 percent in 2013.

The Dow Jones industrial average was up 51.07 points, or 0.33 percent, at 15,521.74. The Standard & Poor's 500 Index was up 6.41 points, or 0.38 percent, at 1,697.32. The Nasdaq Composite Index was up 13.02 points, or 0.36 percent, at 3,667.03.

The S&P 500 rebounded above its 14-day moving average of 1,694.06, though it is still several points away from its all-time high of 1,709.67. The index has gained 19 percent in 2013.

Retail stocks will be in the spotlight as companies report their monthly same-store sales data. Costco Wholesale Corp's July sales came in below expectations, sending shares 1.2 percent lower to $117.90.

Groupon Inc shares soared 24 percent to $10.83. Late Wednesday, the online coupon company reported revenue that exceeded expectations and named its co-founder as chief executive.

Priceline.com Inc and Nvidia Corp are scheduled to report results later Thursday.

Green Mountain Coffee Roasters Inc late Wednesday reported third-quarter revenue that missed expectations, though it raised its full-year profit view. Shares fell 5.5 percent to $75.

Of 434 companies in the S&P 500 that reported earnings through Wednesday morning, Thomson Reuters data showed that 66.8 percent topped analysts' expectations, in line with the 67 percent beat rate over the past four quarters. In terms of revenue, 54.1 percent beat estimates, more than in the past four quarters, but below the 61 percent average since 2002.

(Editing by Bernadette Baum)