U.S. stocks extend gains amid mixed data

U.S. stocks traded higher in the morning session Thursday as investors tried to digest a batch of mixed economic reports.

By midday, the Dow Jones Industrial Average added 120.89 points, or 0.74 percent, to 16,472.27. The S&P 500 gained 15.23 points, or 0.78 percent, to 1,964.09. The Nasdaq Composite Index increased 23.86 points, or 0.50 percent, to 4,773.84.

The U.S. international trade deficit in goods and services decreased from 45.2 billion U.S. dollars in June to 41.9 billion dollars in July, largely in line with market consensus, the Commerce Department reported Thursday.

In the week ending Aug. 29, the advance figure for seasonally adjusted initial jobless claims increased 12,000 from the previous week's revised level to 282,000, exceeding market estimates of 273,000, said the U.S. Labor Department Thursday.

The 4-week moving average was 275,500, an increase of 3,250 from the previous week's revised average.

Some analysts thought that recent relatively soft jobs data could give the Federal Reserve an excuse to postpone rate hikes.

Meanwhile, the U.S. Non-Manufacturing Index registered 59 percent in August, 1.3 percentage points lower than the July reading of 60.3 percent but above market expectations of 58.5 percent, said the Institute Supply Management (ISM) in its monthly survey.

"The drop to 59.0 was smaller than expected. The domestic economy is holding strong in the face of a stronger dollar, lower oil prices, and weakening global demand, especially in the services sector," said Jay Morelock, an economist at FTN Financial, in a note.

"The Fed must weigh the strength of the domestic economy against the prospects of a weakening global economy as they decide whether to raise interest rates in two weeks," he added.

On Wednesday, U.S. stocks rebounded strongly following the deep decline of the previous session as Wall Street assessed the Fed's Beige Book. Endit