The Dow Jones industrial average closed 0.5 percent or about 62.51 points higher at the level of 13,712.21 as large firms reported strong financial data for the recent quarters.

The index recorded its eighth gain in nine sessions after large firms recorded improve performance in the US indicating a moderate recovery in the American economy. DuPont, Verizon and the Travelers Companies, which are among the 30 stocks in the Dow Jones industrial average, rose following strong results during the third quarter of the financial year.

The financial results of American firms have helped the indices rise and Dow is on its way to record its highest monthly gain since October 2011. Analysts have said that the investors are impressed by a growing number of companies reported higher than expected results for the quarter from October to December.

DuPont's stock rose 83 cents or 1.8 percent to $47.82, Johnson & Johnson shares fell 0.7 percent, to $72.69 and Verizon Communications rose 0.9 percent, to $42.94. Meanwhile, the Standard & Poor's 500-stock index recorded an increase of 0.4 percent or 6.56 points to 1,492.56 and the Nasdaq composite average increased 0.3 percent or 8.47 points to the level of 3,143.18.