US stocks rise on durable-goods report

The Dow Jones Industrial Average rose 71.22 points (0.64 percent) to 11,247.98 in the first half-hour of trading.

The broader S&P 500 picked up 8.54 points (0.73 percent) to 1,170.89, while the tech-heavy Nasdaq Composite gained 15.73 points (0.64 percent) to stand at 2,461.79.

Markets were initially "weighed down by festering concerns about bailout discord in the EU and a Moody\'s downgrade of Japan\'s debt rating," said Patrick O\'Hare, an analyst with Briefing.com.

"A better-than-expected durable goods orders report in the US, however, helped turn the tide," he added.

The US Commerce Department said new orders for US durable goods rebounded 4.0 percent in July from June, boosted by a surge in aircraft orders.

"These data... suggest that manufacturing growth could pick up in the coming months from the rate of growth seen in the second quarter," economists from RDQ Economics said in a research note.

Earlier, Asian markets tumbled after the Moody\'s ratings agency cut Japan\'s credit rating by one notch, citing faltering efforts in Tokyo to reduce the country\'s mountain of debt.

Bank of America surged 9.8 percent in early trading. The bank\'s stock has fallen sharply this week on doubts about the strength of its capital base, leading some analysts to declare it undervalued.

Hewlett-Packard, another poor performer in recent days, gained 1.8 percent. The tech giant\'s stock plunged last week after it unveiled a broad strategic restructuring plan which many investors disliked.

Bond prices fell. The yield on the 10-year Treasury note climbed to 2.17 percent from 2.14 percent late Tuesday, while that on the 30-year bond edged up to 3.49 percent from 3.48 percent.

Bond prices and yields move in opposite directions.

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