U.S. stocks advanced strongly Wednesday after some positive reports on the U.S. economy encouraged investors.

The Dow Jones Industrial Average gained 1.2 percent to end at 10,940. The S&P 500 gained 1.8 percent to end at 1,144, and the NASDAQ jumped 2.3 percent to close at 2,461.

European stocks closed sharply higher. London's Financial Times index ended up 3.2 percent , to finish at 5,102. The CAC 40 in Paris finished ahead 4.3 percent to close at 2,974. The DAX index in Frankfurt jumped 4.9 percent to end at 5,473.

Tokyo's Nikkei index fell nine-tenths of a percent to finish at 8,383. Hong Kong's Hang Seng index was closed.

The price of gold was up almost $26 at $1,640.30 an ounce.

The dollar was down against the yen but higher against the euro.