Stocks Rally at Open on Upbeat Data

U.S. stocks rallied at open on Wednesday, as upbeat data on durable-goods orders boosted confidence. The Dow Jones Industrial Average lately jumped 309.13 points, or 1.97%, to 15,975.57. The S&P 500 gained 37.56 points, or 2.01%, to 1,905.17. The Nasdaq Composite rose 97.57 points, or 2.17%, to 4,604.06.

A gauge of U.S. business investment plans posted its largest increase in just over a year in July, underscoring the durability of the economic recovery despite a slowing global economy. The Commerce Department said on Wednesday non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending plans, increased 2.2 percent last month, the biggest rise since June last year.

The People’s Bank of China moved to ease the economy further on Wednesday, saying it will inject 140 billion yuan ($21.80 billion) into the financial system through a short-term liquidity adjustment (SLO) operation.

Google Inc. (GOOGL) was upgraded to buy from neutral and added to Goldman Sachs’ Conviction List of top stock picks on Wednesday. Analyst Heather Bellini raised her price target on the stock to $800 from $680, which represents more than 30% upside from its earlier view.

Schlumberger is buying Cameron in a cash-and-stock deal valued at about $12.71 billion that would create an oilfield equipment and service powerhouse. Schlumberger and Cameron put the acquisition’s total value at $14.8 billion.

Teen apparel retailer Abercrombie & Fitch Co reported a surprise adjusted quarterly profit, helped by demand for Hollister and Abercrombie Kids brands. Excluding items, the company earned 12 cents per share, while analysts expected a loss of 5 cents per share.