US open: Dow jumps 130 points despite mixed data

US stocks rebounded on Friday as investors looked to put the previous session's losses behind them.

Just after 15:00 BST, the Dow Jones Industrial Average was up 134 points, while the S&P 500 and the Nasdaq gained 12 and 37 points respectively.

US stock indices plunged on Thursday, as investors digested a mixed bag of 'B-list' economic data and earnings.

Analysts believe Wednesday’s minutes from the Federal Reserve’s meeting really appear to have worried investors.

“People had begun to believe that the Fed would hold off on rate hikes until next year because of the weakness experienced in the first quarter but Wednesday’s statement suggests that is far from the case,” said Oanda’s senior market analyst Craig Erlam.

“When rate hikes are being discussed alongside weak earnings reports, it’s not surprising that investors are getting a little anxious.”

Consumer confidence in the States rose to its second-highest level since 2007 in April, according to the data on Friday.

The final reading of the widely-followed University of Michigan consumer sentiment index confirmed the preliminary reading of 95.9, up from 93 in March.

US manufacturing activity growth unexpectedly remained unchanged April, data from the Institute for Supply Management showed

The purchasing managers' index (PMI) held at 51.5 last month, compared to analysts' estimates for a reading of 52.

“The slowing in the economy is accompanied by a renewed weakening of price pressures, linked to the exchange rate bringing down the cost of imports,” said Markit chief economist Chris Williamson.

“Input prices showed one of the steepest falls seen since the recession, a cost-saving which producers often passed on to customers.”

Meanwhile, the ISM manufacturing index was unchanged at 51.2 in April.

LinkedIn slumped 20.14% after the professional networking group issued a profit forecast well short of analysts’ estimates, while Visa fell 0.89% after saying late on Thursday that its second quarter earnings were hit by currency headwinds.

Chevron fell 1.69% as first quarter profits of the oil, mineral and chemical giant were affected by the tumbling oil prices, although they fell less than expected.

Insurance American International Group rose 1.60% despite reporting a 53.4% jump in first quarter profit, while Ford edged forward 0.32% after its US sales climbed 5% in April.

The earnings season continues after the close with Warren Buffett’s Berkshire Hathaway set to report after the close.

The dollar gained 0.54% and 1.21% against the yen and the pound respectively and was largely unchanged against the euro, while gold futures declined 0.63% to $1,174.90.

Oil prices declined, with West Texas Intermediate losing 1.2% to $58.91 a barrel, while Brent shed 0.90% to $66.18 a barrel.