(By Salman - iStockAnalyst Writer)
US stocks finished higher on Thursday after newly appointed
AIG CEO Robert Benmosche that he expects that the insurer will be able to pay back the government.
The Dow Jones Industrial Average gained 70.89 points or 0.76% to finish at 9,350.05. The S&P 500 rose 10.91 points or 1.09%to end at 1,007.37. The Nasdaq Composite climbed 19.98 points or 1.01% to 1,989.22.
The Federal Reserve Bank of Philadelphia reported Thursday that its index of general business activity for factories moved to a reading of 4.2 in August, from -7.5 the month before and -2.2 in June.Readings under zero indicate contraction in activity, while positive marks denote expansion. Economists surveyed in advance of the report’s release had expected the overall index to come in at -2.0.
According to Conference Board, the index of leading economic indicators rose 0.6% in July, following an upwardly revised increase of 0.8% in June. Economists expected a reading of 0.7%.
A release by Department of Labor on Thursday showed number of Americans filing first- time claims for unemployment benefits rose 15,000 to 576,000 in the week ending August 15. Economists expected jobless claims to drop to 558,000. The four-week average of seasonally adjusted initial jobless claims, a less volatile gauge, increased 4,250 to 570,000. Continuing claims for the week ending August 8 rose 2,000 to 6.24 million.
Shares of financials rallied. AIG (NYSE:
AIG) soared $5.66 or 21.25% to $32.30. Bank of America Corp. (NYSE:
BAC) jumped 39 cents or 2.33% to $17.14. American Express (NYSE:
AXP) surged 82 cents or 2.59% to $32.52. JP Morgan (NYSE:
JPM) rose $1.01 or 2.44% to $42.42.
Cisco Systems (NASDAQ:
CSCO) soared 65 cents or 3.06% to $21.89.
Shares of diversified US firm General Electric (NYSE:
GE) climbed 28 cents or 2.07% to $13.81.
United Technologies (NYSE:
UTX) rose $1.26 or 2.25% to $57.26.
Shares of airplane maker Boeing Co.
