2013.08.3005:49:51UTC+00U.S. stocks soar as economy expands, Syria tension subside

U.S. stocks skyrocket, sending the Standard & Poor’s 500 Index higher for a second day, as data showed the economy developed at a more rapid pace in the second quarter and concerns over Syria eased.

Verizon Communications Inc. jumped 2.7 percent as Vodafone Group Plc stated that the companies are in talks over their Verizon Wireless venture. Guess? Inc. allied 13 percent after the apparel maker reported second-quarter earnings that surpassed analysts’ forecast. Exxon Mobil Corp. relinquished 1.8 percent as oil futures pulled back from a two-year high.

Fed Stimulus

Unemployment claims in the week ended Aug. 24 dropped 6,000 to 331,000 from a revised 337,000 the week before that was higher than initially reported, the Labor Department said today in Washington. The median forecast of 50 economists surveyed by Bloomberg called for a drop to 332,000.

Low Volume

“We’re back to focusing on economic data, specifically out of the U.S. and Europe, and the Fed tapering, as the market is coming around to believe the Syrian conflict poses only a short-term risk,” said Manish Singh, who helps oversee $2 billion as head of investment at Crossbridge Capital in London. “I am of the opinion that tapering will happen in September, regardless of data.”

Verizon Advances

Verizon Communications increased 2.7 percent to $47.82. The firm is in advanced talks to acquire Vodafone’s 45 percent stake in their Verizon Wireless venture for about $130 billion, people with knowledge of the matter said.

Airlines Uptrend

The Bloomberg U.S. Airlines Index uptrend 2 percent as US Airways Group Inc. grew 4 percent to $15.96. Delta Air Lines Inc. leaped 2.7 percent to $19.64.

Guess soared 13 percent to $30.82. Second-quarter adjusted earnings per share amounted to 52 cents, exceeding the average estimate of 35 cents in a survey of analysts. The company raised its full-year earnings guidance to $1.78 to $1.92 a share, from a previous prediction of $1.70 to $1.90. Analysts had forecast $1.79.

Exxon Mobil missed 1.8 percent to $87.27, while Chevron Corp. relinquished 1.2 percent to $120.37. Oil futures pulled back 1.2 percent after surging to the highest level since May 2011 yesterday.

Campbell Soup Co. backslide 3.1 percent to $43.33 after the company reported fourth-quarter sales lower than analysts’ calculations.