US stocks jumped on Friday as surprisingly strong data on home sales and durable goods orders relieved economic worries and bolstered investor confidence.

The Commerce Department reported new home sales unexpectedly rose 2.8 per cent in July to an annual rate of 870,000. However, the pace is still off 10.2 per cent from a year ago.

Another positive report came from the Commerce Department. New orders for long-lasting manufactured goods surged a much bigger than expected 5.9 per cent in July, the biggest gain since September.