US stocks moved sharply higher in midday trading Thursday, as investors assessed the latest corporate deal and earnings news. The rally came a day after the Federal Reserve suggested that it wasn't planning to raise interest rates right away.
Motorcycle maker Harley Davidson was among the biggest gainers after a Wall Street analyst upgraded his view on the stock following the announcement of a big stock buyback plan.
KEEPING SCORE: The Dow Jones industrial average rose 187 points, or 1.1 percent, to 18,123 at 12:15 p.m. Eastern Time. The Standard & Poor's 500 index added 20 points, or 1 percent, to 2,120. The Nasdaq composite gained 68 points, or 1.4 percent, to 5,133.
THE QUOTE: The rally partly reflects relief among investors following the Federal Reserve's latest policy update on Wednesday, said Michael Baele, managing director and senior portfolio manager at U.S. Bank Private Client Reserve. The central bank said that it needs to see more improvement in the economy and stronger signs of inflation before lifting rates.
"The Fed's likely to raise rates later this year, but maybe not as aggressively as some market participants worried," Baele said.
HIGH ON THE HOG: Shares in Harley-Davidson climbed 4.4 percent after the motorcycle manufacturer said that its board approved a plan to buy back of 20 million of its own shares in addition to the purchase of 15.9 million shares it authorized earlier this week.
UBS upgraded the stock to a "Buy." Harley-Davidson was the biggest gainer in the S&P 500, adding $2.48 to $59.14.
TRACK THIS: Fitbit shares surged 50 percent in the first day of trading for the fitness tracking gear maker. The company's initial public offering priced at $20 per share, slightly more than anticipated. The stock jumped $9.99 to $29.99.
DOLLAR EFFECT: Shares in Oracle sank 7 percent after the software company reported earnings that fell short of analysts' expectations late Wednesday. Oracle said that the stronger dollar continued to hurt its earnings. The stock fell $2.96 to $41.95.
BAD QUARTER: Bankrate slumped 18.5 percent after the financial content company reported disappointing first-quarter financial results and weaker-than-expected fiscal outlook. The stock lost $2.56 to $11.29.
EYE ON THE ECONOMY: Two government reports provided encouraging signs about the economy. An index designed to predict the future health of the economy posted a second straight strong increase in May, indicating the economy should gain strength in the second half of this year. Separately, weekly applications for unemployment benefits fell last week to a seasonally adjusted 267,000, near 15-year lows reached two months ago.
THE FED: The central bank said Wednesday that it wants to see further economic gains and higher inflation before raising interest rates from record lows. The Fed has kept its benchmark rate close to zero for more than six years, but many economists expect policy makers to start raising rates before the end of the year.
GREEK DRAMA: In Europe, Greece and its international lenders are deadlocked in bailout talks. The debt-stricken nation needs more loans from its creditors before June 30, when its current bailout program expires and a 1.6 billion euro ($1.8 billion) debt repayment is due. Greece and its creditors blame one another for an impasse in the talks. A default could result in Greece leaving the euro currency bloc, dealing a blow to the project.
EUROPEAN STOCKS: In Europe, Britain's FTSE 100 gained 0.4 percent, while Germany's DAX rose 1.1 percent. France's CAC 40 added 0.3 percent. Germany's benchmark index is on track for its third straight month of losses.
ENERGY: Benchmark U.S. crude added 27 cents to $60.19 per barrel on the New York Mercantile Exchange. The contract closed up 5 cents at $59.92 per barrel in New York on Wednesday.
CURRENCIES: The dollar weakened to 122.83 yen from 123.58 yen on Wednesday. The euro strengthened slightly to $1.1404 from $1.1354.
BONDS: In government bond trading, prices edged lower. The yield on the 10-year Treasury note rose to 2.35 percent from 2.32 percent late Wednesday.