The major US equity market averages have started the day moderately higher, with gains of 0.7%, and the Dow Jones Industrials at its best levels ever.

That comes ahead of the release of this afternoon's ISM services data and a speech from the President of the US Federal Reserve bank of Richmond, Jeffrey Lacker, tonight.

Chip maker Qualcomm has announced a 40% rise in its dividend policy and a $5bn share repurchase program.

Helping stocks along is news that China will increase its deficit spending this year so as to meet its target of 7.5% GDP growth.

Fashion retailer JC Penney is off after people familiar with the matter said Vornado Realty Trust sold 10m shares in the department-store company at $16.40 apiece through Deutsche Bank AG, Bloomberg reports.

Google is rising on the back of a price target upgrade from Jefferies up to $1,000 per share.

Yahoo may benefit from an upgrade out of analysts at Cantor.

American Apparel is moving 14% higher after pleasing traders with its revenue guidance

Front month West Texas crude futures are now 0.32% higher at $90.43 per barrel on the NYMEX.

10 year US Treasury yields are now up by 2 basis points to the 1.89% mark.

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