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US stocks rise on upbeat German data, HP earnings

Traders work on the floor of the New York Stock Exchange at the opening bell August 8, 2011
Traders work on the floor of the New York Stock Exchange at the opening bell August 8, 2011. US stocks moved higher Friday following a bullish report on German business sentiment and solid earnings results from computer company Hewlett-Packard.

US stocks moved higher Friday following a bullish report on German business sentiment and solid earnings results from computer company Hewlett-Packard.

About 40 minutes into trade, the Dow Jones Industrial Average rose 51.51 points (0.37 percent) to 13,932.13.

The broad-based S&P 500 increased 6.16 (0.41 percent) to 1,508.58, while the tech-rich Nasdaq Composite Index jumped 17.08 (0.55 percent) to 3,148.57.

Stocks rebounded from two straight days of losses after the German Ifo business climate index notched its strongest gain in two and a half years, hitting its highest level since April 2012.

Market watchers also highlighted comments from St. Louis Federal Reserve President James Bullard, who told CNBC that the Fed's loose monetary policy will remain in effect for "a long time."

Analyst Patrick O'Hare of Briefing.com called Bullard's comments "an early buying catalyst."

The market was also buoyed by a Hewlett-Packard earnings report that bested analyst expectations. Shares in the struggling computer company, a Dow component, moved 6.7 percent higher.

Insurer American International Group late Thursday posted a $4 billion loss, yet reported better-than-expected operating earnings. AIG shares were up 3.7 percent.

Texas Instruments, a semiconductor company, picked up 3.4 percent after announcing a 33 percent increase in its dividend and $5 billion in share buybacks.

General Motors inched up 0.2 percent following reports that it plans to invest $7.3 billion in its South Korean unit over the next five years.

Cabot Oil and Gas Corp. jumped 7.7 percent after reporting record petroleum production levels for 2012.

Aruba Networks, which provides network services for mobile enterprises, surged 19.9 percent after reporting earnings that topped estimates.

Abercrombie & Fitch sank 4.1 percent as the retailer's tepid guidance for 2013 earnings offset an increase in the company's dividend.

Bond prices rose. The yield on the 10-year Treasury bond fell to 1.97 percent from 1.98 percent late Thursday, while the 30-year fell to 3.16 percent from 3.17 percent. Bond prices and yields move inversely.

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