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US stocks rise on World Bank forecast

New York - US stocks Wednesday moved higher following a rise in European markets after the World Bank raised its growth forecast for the global economy.

About 35 minutes into trade, the Dow Jones Industrial Average advanced 74.31 (0.45 percent) to 16,448.17.

The US bourse is set to open higher as European leaders get ready to meet. Credit: REUTERS

The broad-based S&P 500 added 7.71 (0.42 percent) at 1,846.59, while the tech-rich Nasdaq Composite Index tacked on 25.35 (0.61

percent) to 4,208.36.

The World Bank said global economic growth is estimated to hit 3.2 percent this year, accelerating from a 2.4 percent annual pace in 2013.

At the same time, the report warned of potential volatility in capital flows as the United States withdraws its stimulus.

Bank of America jumped 3.6 percent after reporting an eight-fold increase in quarterly earnings due as a set-asides for reserves fell due to improved credit quality.

The US banking giant earned 29 cents per share, up 3 cents from analyst forecasts.

Other leading banks also rallied on better sentiment towards the sector following the first earnings reports, including Dow component JPMorgan Chase (+1.7 percent), Wells Fargo (+1.9 percent) and Citigroup (+1.8 percent).

General Motors fell 1.3 percent after forecasting “modest” global industry growth in 2014.

The US auto giant announced late Tuesday that it would soon pay its first corporate dividend since the 2008 government rescue.

Apple rose 2.5 percent as it prepared to market iPhones to more Chinese consumers following a major deal with China Mobile. Chief executive Tim Cook told news outlets the launch was a “watershed moment” for the company.

Electric car company Tesla rose 3.4 percent after announcing that fourth-quarter sales exceeded expectations by about 20 percent and the company reported a huge backlog of orders.

Bond prices fell.

The yield on the 10-year US Treasury rose to 2.90 percent from 2.87 percent, while the 30-year rose to 3.83 percent from 3.80 percent.

Bond prices and yields move inversely. - Sapa-AFP

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