* World economy shows evidence of rebound
* Abercrombie & Fitch shares tumble after results
* Indexes up: Dow 0.2 pct, S&P 0.5 pct, Nasdaq 0.8 pct
By Rodrigo Campos
NEW YORK, Aug 22 U.S. stocks rose on Thursday,
with the Dow industrials up for the first time in seven sessions
after upbeat data from the world's top economies more than
offset lingering uncertainty over the Federal Reserve's asset
purchases stimulus program.
Investors were encouraged by business surveys that showed
U.S. manufacturing activity hit a five-month high in August,
growth in the euro zone was better-than-expected and China's
manufacturing sector rebounded, providing evidence that the
world economy is on the mend.
Bets on a stronger economy helped lift shares of cyclical
sectors like energy, basic materials and industrials, with
financial shares also up in the S&P 500.
"The way the U.S. recovery is going, to have an improving
Europe and China is certainly going to help the global picture,"
said Art Hogan, managing director at Lazard Capital Markets in
Other U.S. data showed the number of Americans filing new
claims for unemployment benefits rose last week but held close
to a six-year low and gave a positive signal for hiring during
The Dow Jones industrial average rose 25.61 points or
0.17 percent, to 14,923.16, the S&P 500 gained 8.46
points or 0.51 percent, to 1,651.26 and the Nasdaq Composite
added 27.978 points or 0.78 percent, to 3,627.768.
The Dow industrials fell Wednesday for a sixth straight day
and the S&P 500 closed below its 50-day moving average for a
fourth session after minutes from the Fed's July meeting gave
few clues about when, and by how much, the U.S. central bank
will start reducing its $85 billion a month in bond purchases.
Shares of Hewlett-Packard dropped 11.7 percent to
$22.42, a day after the company reported a decline in Enterprise
Group revenue, the company's second-largest division and a
critical component of Chief Executive Meg Whitman's plan to
transform the company.
Abercrombie & Fitch shares tumbled 19.3 percent to
$37.79 after the apparel retailer said quarterly comparable
sales fell a larger-than-expected 10 percent.
Sears Holdings, which operates Sears department
stores and the Kmart discount chain, reported a much
bigger-than-expected quarterly loss and its shares fell 8.6
percent to $39.56.
GameStop shares were up 14.2 percent at a more than
five-year high of $54.36 after the world's largest retailer of
video game products posted results that topped Wall Street