US open: Stocks rise after better-than-forecast factory data
US stocks advanced after a report showed a better-than-expected increase in industrial and manufacturing production.
Industrial output climbed 0.4% in July, the same rate of growth as the previous month and beating forecasts for a 0.3%.
Manufacturing production rose 1% in July following a 0.3% increase in June. Analysts had predicted a 0.4% gain.
"On balance, these data support our view that the economy remains fundamentally healthy and will strengthen in the second half of the year," said Capital Economics economist Paul Dales.
The figures offset a disappointing New York Fed Empire Manufacturing report which fell to 14.69 in August from 25.6 in July, missing the consensus estimate of 20.
Policymakers have been weighing data to weigh whether the world's biggest economy has recovered enough to sustain an interest rate hike.
The University of Michigan's consumer confidence index for the month of August unexpectedly slipped to 79.2 from 81.8 the month before (consensus: 82.5). The expectations for the sub-index fell to 66.2 from 71.8, hitting its lowest mark since October.
On Thursday, Federal Reserve St. Louis President James Bullard said he would still like to see the central bank raise interest rates for the first time this cycle in March 2015. "The end of the first quarter of 2015 is still my preferred liftoff date," Bullard said in an interview with The Wall Street Journal.
Meanwhile, the market continued to watch geopolitical developments, particularly in the Ukraine after the nation said Russia is still supplying rebels in the eastern part of the country with equipment. NATO also said it sees a continuous flow of Russian weapons into the region. Officials from the International Committee of the Red Cross began inspecting a convoy of trucks sent by Russia to provide humanitarian aid to eastern Ukraine.
On the company front, Monster Beverage Corp. surged after Coca-Cola Co. agreed to buy a stake in the company.
J.C. Penney Co. rallied after reporting a narrower second-quarter loss.
Applied Materials gained after forecasting fiscal fourth-quarter sales that may beat analysts' estimates.
West Texas Intermediate crude futures rose 0.28% to $102.36 per barrel, according to the ICE.
The US 10-year yield fell two basis points to 2.37%.
RD