Major indices were higher in midday trading on a decline in jobless claims and mortgage rates.
The S&P 500 was up 1.5% to 2,057.01. The Dow Jones Industrial Average was up 1.5% to 17,855.05. The Nasdaq was up 1.7% to 4,731.55.
The yield on a 10-year Treasury bond rose 3.5% to 2.02%.
The price of gold declined 0.1% to $1,209.
Anaheim-based Pacific Sunwear of California Inc. was up 18.3% to $2.71 and a market cap of about $188 million. The apparel retailer said same-store sales in December grew 9% compared with the same period last year, with a 4 to 5 percentage point improvement in gross margins. It said its fourth quarter loss was now expected to be about 11 to 12 cents per share, instead of a previously announced 12 to 17 cents.
Irvine-based Impac Mortgage Holdings Inc. was up 9.8% to $7.18 and a market cap of about $69 million. The lender said it would buy the mortgage loan business of privately held Anaheim-based CashCall Inc.