<b>Morning ticker:</b> Large caps trading up on jobs report

Stocks rose, extending the biggest monthly rally in more than a year for the Standard & Poor’s 500 Index, and the euro and copper gained on better-than-estimated earnings, a decrease in U.S. jobless claims and improving confidence in Europe’s economy.

The S&P 500 climbed 0.5 percent to 1,112.13 at 9:54 a.m. in New York, extending its July advance to 7.9 percent. The Stoxx Europe 600 Index increased 0.9 percent to a 12-week high. The euro appreciated 0.7 percent to a two-month high of almost $1.31. Copper jumped 1.5 percent to the highest since May 4. Ten-year Treasury yields rose 3 basis points to 3.03 percent.

Exxon Mobil Corp. and AstraZeneca Plc today joined about 70 percent of companies in the MSCI World Index that have reported better-than-estimated profit so far in the second-quarter reporting season, according to data compiled by Bloomberg. Initial U.S. jobless claims fell by 11,000 to 457,000 last week, while the European Commission said confidence in the region’s economy rose to the highest in more than two years.

“It’s a pretty good earnings season,” said James Paulsen, who helps oversee about $375 billion as chief investment strategist at Wells Capital Management in Minneapolis. “News out of Europe continues to be surprisingly positive. There was fear that jobless claims would be rising again. The fact that it didn’t happen brought some relief. Chances are stocks will be higher by year-end.”

The S&P 500 snapped a two-day losing streak triggered by a slump in consumer confidence and a drop in durable goods orders. Exxon Mobil contributed the most to the index’s gain today, rallying 1 percent after posting its biggest profit increase since 2003.

Takeover Targets

Genzyme Corp. rose 3.3 percent after three people with knowledge of the situation said Sanofi-Aventis SA Chief Executive Officer Chris Viehbacher has support from his board of directors to bid as much as $70 a share for the largest maker of medicines for genetic diseases. Dollar Thrifty Automotive Group Inc. climbed after Avis Budget Group Inc.’s $46.50 a share offer topped a bid from Hertz Global Holdings Inc.

Global takeovers have reached $1.06 trillion so far this year, 9.4 percent more than at the same time in 2009, according to data compiled by Bloomberg.

Treasury 30-year bonds dropped, pushing yields to a one- month high of 4.13 percent. A government note sale today will wrap up three auctions this week totaling $104 billion. Treasuries gained the most in a week yesterday as a Federal Reserve survey showed U.S. economic growth slowed in some areas.

European Stocks

AstraZeneca helped lead gains in European shares, rallying 3.8 percent after raising its earnings forecast, doubling a share buyback plan and winning a U.S. panel’s backing to sell a blood-thinner. France Telecom SA jumped 6.6 percent after saying it will maintain its dividend.

An index of executive and consumer sentiment in the 16 euro nations rose to 101.3 from 99 in June, the European Commission said. That’s the highest since March 2008.

Positive “economic surprises in Europe have been plentiful,” Karen Olney, a strategist at UBS AG in London, wrote in a report that said the bank’s global recommendation is for investors to upgrade the region’s shares to “neutral” from “underweight.” “Global investors were holding back on allocations to Europe.”

The euro appreciated against nine of 16 major currencies, rallying 0.4 percent versus the pound and 0.8 percent against the New Zealand dollar.

The MSCI Emerging Markets Index climbed for an eighth day, rising 0.5 percent. Russia’s Micex Index increased 2 percent as oil producer OAO Rosneft rallied, while Ukraine’s benchmark equities index gained 0.9 percent after the International Monetary Fund approved a $15.2 billion loan to the country.