U.S. blue-chip stocks finished higher Thursday but the technology sector slid, as stronger U.S. economic data struck a contrast with a leading chip maker's forecast cut. The Dow Jones Industrial Average finished 143.08 points, or 1.3%, higher at 11153.98 in a volatile session that saw the blue-chip index turn negative midsession, after surging more than 200 points in the morning. It jumped again in the final 45 minutes of trading.

U.S. Markets

The Standard & Poor's 500-stock index added 9.34 points, or 0.81%, to 1160.40. The technology-oriented Nasdaq Composite lagged, falling 10.82 points, or 0.43%, to 2480.76. Advanced Micro Devices was the S&P 500's weakest stock, falling 14% after cutting revenue and gross-margin estimates for the third quarter. The weaker outlook weighed on the technology sector. But financial stocks were strong after Germany voted to expand the euro zone's bailout fund, helping to ease investor jitters over the sovereign-debt crisis. Two economic data points helped set a positive tone for the session.

The number of idled U.S. workers filing new claims for unemployment benefits fell sharply last week, according to the Labor Department, although the surprise improvement in the U.S. employment picture may have been driven by seasonal adjustments. In a second report, gross domestic product, the broadest measure of all the goods and services produced in an economy, grew at an inflation-adjusted annual rate of 1.3% from April to June, the Commerce Department said.

E.U. Markets

European stocks shook off early weakness to end higher Thursday, as upbeat U.S. data and Germany's approval of the European Financial Stability Facility extension propped up confidence for now, at least. The Stoxx Europe 600 index closed up 0.7% at 228.90. France's CAC-40 index ended up 1.1% at 3027.65 and Germany's DAX added 1.1% to 5639.58. However, the U.K. market significantly underperformed its European peers. Weakness in key metals prices weighed on the FTSE 100's heavily weighted mining sector, pushing the index down 0.4% to 5196.84, as investors worried about the possibility of an economic hard landing in China. Shares of Xstrata PLC declined 3.9%, Fresnillo PLC fell 4.5% and Rio Tinto PLC dropped 3%. Stocks edged cautiously higher ahead of Germany's crucial vote on the extension of the European Financial Stability Facility, which passed. Later in the session, some encouraging U.S. data in the form of better than expected initial jobless claims and GDP numbers also helped to underpin sentiment. Nevertheless, Thursday's session was choppy overall.

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Europe's main indexes came off highs following the result of the German vote, suggesting that for many it was a case of it's better to travel than to arrive. Indeed, indexes ended off highs, as investors continued to assess the implications of the extension which is yet to be ratified by all 17 euro-area members--with many still unconvinced a bigger fund will solve the euro zone's problems. In major market activity, banks bounced back following the U.S. jobs data and GDP numbers. Commerzbank rose 4.7%, while Deutsche Bank rose 3.9%. Shares of BNP Paribas surged 5%, Societe Generale gained 5.8% and Credit Agricole rose 4.4%. Luxury retailers were under pressure, however, with investors concerned about a hard economic landing in China, analysts said. LVMH Moet Hennessy Louis Vuitton SA dropped more than 5% in Paris, while shares of Burberry Group PLC fell more than 8% in London.

Asian Bourses

South Korean shares gained sharply Thursday in Asia and Japanese shares moved off early lows, following a volatile session with investors bracing for the latest twist in Europe's debt saga. South Korea's Kospi index jumped 2.7% to 1769.29, while Japan's Nikkei Stock Average rose 1% to 8701.23 and India's Sensex gained 1.5% to 16698.07. Trading on the Hong Kong Stock Exchange was cancelled Thursday after a typhoon warning remained in place through the day. On the mainland, the Shanghai Composite index lost 1.1% to 2365.34. Asian equities started on a weak note on Thursday but South Korean stocks rallied strongly, with investors heading into the end of the third quarter picking up some beaten-down stocks. Notable gainers in Seoul included chip makers Samsung Electronics up 3.7% and Hynix Semiconductor up 6.3%. Auto makers also advanced in Korea, with Hyundai Motor up 2.9% and Kia Motors up 1.6%. Honda Motor rose 1% and Nissan Motor advanced 3.8% in Tokyo. Jiangxi Copper fell 2.7% in Shanghai.

Commodities

Base metals closed mostly higher on the London Metal Exchange Thursday, tracking equity markets higher after U.S. GDP and jobless reports exceeded forecasts and as confidence was boosted on Germany's vote to expand the euro zone's bailout fund. Persistent European debt fears were somewhat eased after the German parliament passed legislation to expand and overhaul the European Financial Stability Facility. French President Nicolas Sarkozy and German Chancellor Angela Merkel then urged euro-zone countries to move ahead quickly to approve a second aid installment for Greece and changes to the currency bloc's bailout mechanism, supporting renewed optimism across world markets. Oil futures eked out a gain Thursday after an early rally slipped away as U.S. stocks tumbled late in the session. Light, sweet crude for November delivery settled up 93 cents, or 1.15%, to $82.14 a barrel on the New York Mercantile Exchange. Brent crude on the ICE Futures Europe exchange settled up 14 cents, or 0.13%, at $103.95 a barrel. Gold futures ended flat as signs of progress in Europe's debt crisis struggled to convince investors to leave the sidelines and return to the precious metals market. The most actively traded contract, for December delivery, settled 80 cents, or 0.1%, lower at $1,617.30 a troy ounce on the Comex division of the New York Mercantile Exchange. The front month contract, for October delivery, fell 60 cents to settle at $1,615.50 a troy ounce.

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