In the midday exchanges, the Dow Jones Industrial Average gained 42.66, or 0.38 percent, to 11,242.59. The Standard & Poor's 500 index added 1.72, or 0.13 percent, to 1,280.27, and the Nasdaq composite index rose 13.53, or 0.65 percent, to 2,092.34.

The factory orders in the United States increased by 1.2 percent in June, the strongest gain since March, the Commerce Department reported on Thursday.

All the strength reflected demand for "durable" goods -- items expected to last for more than three years. Order for durable goods increased by 2.9 percent to 215.8 billion dollars in June following a 0.3 percent increase in the previous month.

Meanwhile, the main U.S. retailers, such as Wal-Mart and J.C. Penney, reported strong rise of consumer spending, which accounts for about two-thirds of U.S. economic activity.

Wall Street still worry about a further rate hike next Tuesday. The Fed just raised the short-term interest rates to 5.25 percent, the highest level in five years, at the end of June in a bid to curb inflation.

Source: Xinhua