(MENAFN- ProactiveInvestors) U.S. stocks surged Thursday as oil prices rebounded with investors also drawing support from and M&A activity in the healthcare sector.
At noon in New York the Dow Jones Industrial Average was up 154 points at 17828 while the Nasdaq added 32 points to 4749 and the S&P 500 climbed 17 points to 2059.
Traders were encouraged after announced a $17 billion deal to buy . Investors also took in a pile of mixed economic reports showing jobless claims rose by less than expected last week while the US trade gap hit its highest level in two years.
On Wednesday an early rally in US stocks faded after the European Central Bank's decision to cancel its acceptance of Greek bonds as collateral for loans.
Ahead of tomorrow's January employment report the Labor Department reported jobless claims rose by 11000 to 278000 in the last week of January. Economists had expected 290000 new filings for last week up from the previous estimate of 265000 the prior week.
December trade deficit was also reported jumping 17.1% in December to $46.6 billion much higher than the $38.5 billion expected as US exports fell 0.8% and imports rose 2.2%. At the same time the government reported that fourth quarter US productivity fell 1.8% compared to expectations for a flat reading.
Oil prices jumped more than 7% Thursday to trade at US$51.81 a barrel in New York after tumbling nearly 9% on Wednesday which put an abrupt end to a four-session rally on news of record high crude inventories in the US.
In world markets European stocks finished mixed as Greek shares tumbled after the ECB put more pressure on the country by revoking a waiver that allowed banks to use the Greek government debt as collateral for loans. Finance ministers from Germany and Greece are meeting for the first time today. Meanwhile German industrial orders surged to their highest level since April 2008 in December.
In corporate activity () late Wednesday posted earnings and revenue that topped estimates and said it has bought fitness app MyFitnessPal for $475 million.
() early Thursday posted better-than-expected results in its holiday quarter but gave a disappointing outlook for its current quarter. Shares fell 3.7%.
Yum Brands () missed estimates on earnings but revenue beat expectations with shares rising some 2%. The company said same store sales fell by a smaller-than-expected 16% in China.
Keurig Green Mountain () missed expectations on both the top and bottom lines in its latest quarter issuing disappointing guidance for the current fiscal year. Shares declined 5% Thursday.
(NYSE:AZN) posted a quarterly profit that fell short of analyst estimates but also announced that it is buying the branded lung drug business of Actavis (NYSE:ACT) for $600 million.
After the closing bell (NASDAQ:TWTR) and () are due to report their quarterly results. 's stock had sunk 40% over the past 12 months as of yesterday's close.
In other news () has agreed to buy () for $90 a share or about $17 billion.
() says it is planning to enter the Japan market in the fall of this year while () is reportedly in talks with programmers about content deals that would allow it to offer a Web-based TV service like the one recently announced by Dish.
Gold futures edged down $2 to $1264 an ounce on Thursday in New York.
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