US open: Stocks extend post-Fed rally despite mixed data

US stocks jumped strongly on Thursday as the post-Fed rally continued into its second day despite a raft of mixed economic data.

By 10:07 in New York, the Dow Jones Industrial Average was up 1.4%, while the Nasdaq and S&P 500 rose 1.6%.

Indices had jumped strongly on Wednesday with the S&P 500 and Dow registering their best one-day performances of the year, up 1.7% and 2.1% respectively, after the Federal Reserve modified its forward guidance regarding interest rates.

The central bank didn't remove its “considerable time” language but added that it “can be patient” about tightening. Fed chair Janet Yellen said she doesn’t see the Fed raising rates for “at least the next couple of meetings”.

"Rejoice! The Christmas bump finally seems to have arrived," said analyst Connor Campbell from Spreadex.

"The effects of the positivity injected into the US markets by the US Fed last night was still being felt today, allowing the US markets to continue on its home-grown upward trend whilst simultaneously being boosted by the (relatively) rallying Brent crude oil and a robust day from the European indices," he said.

Economic data comes in mixed

US jobless claims decreased by 6,000 to 289,000 in the week ended 13 December, the fewest since early November, the Labor Department said. Analysts had been expecting 295,000 claims. Jobless claims have been below 300,000 for 13 of the past 14 weeks.

The preliminary reading of the US Markit services purchasing managers' index unexpectedly dropped to 53.6 in November from 56.2 previously, missing the forecast of a rise to 53.6.

The US leading indicators index increased 0.6% after rising 0.9% in October, above the expected rise of 0.5%.

Meanwhile, the Philadelphia Fed manufacturing index sank sharply to 24.5 in December from 40.8 previously, slightly under the forecast of 26. Activity pulled back after rising to a 21-year high in November.

GM suspends deliveries to Russian dealers

US car-maker General Motors (GM) was rising early on after saying it has suspended the delivery of cars to dealerships in Russia following the rouble's sharp decline. GM's European division Opel said it took the decision to "manage its business risk".

Energy stocks were rising strongly for the third straight day as crude prices bounced back after recent falls. Anadarko Petroleum, Devon Energy, Exxon Mobil, Chevron, Occidental Petroleum and Conocophillips were all putting in decent gains.

West Texas Intermediate crude for January delivery was up 0.4% at $56.69 a barrel.

The yield on a benchmark US 10-year Treasury was seven basis points higher at 2.2%.

Oracle was in focus as strength in the tech group's cloud business helped fiscal second-quarter results beat forecasts.

Restaurant company Dunkin' Brands dropped sharply after cutting its like-for-like sales estimate for 2014 to just 1.4%, compared with its previous guidance of 2-3% growth. Guidance for 2015 also disappointed.