US stocks boosted by productivity data

(MENAFN- ProactiveInvestors)US markets have opened sharply higher albeit not as strong as expected in pre-market trading. The Dow Jones industrial average was up 139 at 16198 having notched up a 200 point gain at one stage while the S&P 500 was up 13 at 1927. The Nasdaq Composite was 41 points to the good at 4677 after an hour or so of trading. US productivity data for the second quarter was regarded as a mixed blessing. Output rose at an annualised 3.3% versus an initial estimate of a 1.3% gain making it the best growth rate since the end of 2013. Pessimists viewed the data as offering encouragement to the Federal Reserve to get a move on with its interest rate rise programme. Meanwhile private sector payrolls rose by 190000 in August according to Automatic Data Processing. In the previous month there had been 177000 new jobs created in the private sector. Computer chip giant Intel (NASDAQ:INTL) was wanted after it introduced the 6th Generation Intel Core processor family based on a design dubbed Skylake after the market closed yesterday. The company said Skylake will deliver about two and half times the performance of its predecessor have 30 times better graphics and enable systems to go three times as long on one battery charge. Shares were up 2.23%. Also in demand was tax returns specialist H&R Block (NYSE:HRB) after it said it would offer to buy back up to $1.5bn of its shares. Telecoms giant AT&T (NYSE:T) meanwhile was dismissive of an offer to its shareholders by TRC Capital to buy up to 3mln shares at US$31.30 a throw. That offer is below the current price of US$32.625 and the board of AT&T urged shareholders to reject what it described as a "mini-tender". Handbags seller Vera Bradley (NYSE:VRA) shot up US$2.20 to US$12.64 after better than expected results announced this morning but discount retailer Dollar Tree (NASDAQ:DLTR) is friendless down US$3.29 at US$66.36 after a disappointing trading update released after the bell yesterday.