NEW YORK (AP) -- Another batch of strong earnings has pushed the Dow Jones industrial average close to its highest level of the year.
The upbeat reports Thursday overshadowed mixed news on jobs and signs that growth in China slowed modestly during the third quarter.
The Dow rose 52 points in morning trading after index components Caterpillar Inc., Travelers Cos. and McDonald's Corp. all beat expectations and AT&T Inc. matched forecasts.
Mining and construction equipment maker Caterpillar and insurer Travelers raised their earnings outlooks for the year after the strong results. Investors have been focused on corporate outlooks because they build confidence that the sluggish economy will pick up.
Outside of the Dow, the Nasdaq composite index got a lift after online marketplace operator eBay Inc. and video subscription service provider Netflix Inc. reported upbeat quarterly results following the closing bell Wednesday.
United Parcel Service Inc.'s profit rose and it raised its full-year outlook as operating profit at its U.S. units improved.
Xerox Corp. doubled its profit on surging demand for its copying equipment. Drug maker Eli Lilly & Co.'s profit jumped 38 percent, but concerns remain about expiring patents in the coming years. JetBlue Airways Corp. continued a run of positive airlines earnings, saying its profit nearly quadrupled.
The broad strength in earnings indicates companies are managing quite well even though the U.S. economy remains weak. International growth has helped many companies, but Thursday's results also show U.S. consumers are buying goods even if it's not at levels seen before the recession.
The Dow rose 52.22, or 0.5 percent, to 11,159.20 in morning trading. The Dow jumped 130 points a day earlier on strong earnings from airlines and manufacturers. After a strong September, stocks are again proving to be resilient, quickly bouncing back after any signs of economic uncertainty. The Dow is up 3.4 percent so far this month and now within 50 points of its high for the year.
The Nasdaq rose 15.93, or 0.7 percent, to 2,473.32. The Standard & Poor's 500 index rose 5.12, or 0.4 percent, to 1,183.29.
The Labor Department said first-time claims for unemployment benefits fell last week. But the decline was essentially offset by a surprisingly sharp upward revision to the previous week's claims. First-time claims remain stuck at levels that indicate companies are not hiring many workers, even though they aren't cutting many jobs either.
The Chinese government, meanwhile, said growth slowed to a still robust 9.6 percent in the third quarter. China has been trying to slow growth to a more sustainable level that keeps inflation from getting out of control. Slower growth could have an effect on exports and sales to the country. Many companies have relied on growth in China to offset weakness in U.S. and Europe's economies.
Travelers shares rose 80 cent so $55.44, while McDonald's climbed $1.68, or 2.2 percent, to $79.09. Caterpillar shares slipped 14 cents to $79.74 after moving higher in premarket trading.
AT&T fell 37 cents to $28.24.
Netflix surged $19.86, or 13 percent, to $173.01, while eBay rose $2.48, or 9.7 percent, to $28.14.
Xerox rose 16 cents to $11.25, while JetBlue rose 10 cents to $7.05.
UPS fell 10 cents to $69.55. Eli Lilly fell 55 cents to $35.46.
Bond prices fell as investors moved into stocks. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 2.52 percent from 2.48 percent late Wednesday.
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