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Markets closed higher on Thursday following robust corporate earnings from a number of big companies, including Facebook. Facebook posted a better-than-expected earnings beat that saw the tech giant’s shares rally. Moreover, the 10-year Treasury yield traded below the 3% level, as investors shed worries that had fuelled huge selloffs over growing U.S. debts and rising costs. This saw all three major indexes closing the day 1% higher on Thursday.
The Dow Jones Industrial Average (DJI) added 1%, or 238.51 points, to close at 24,322.34. The S&P 500 gained 1% to close at 2,666.94. The Nasdaq Composite Index ended the day at 7118.68, gaining 1.6%. A total of 6.74 billion shares were traded on Thursday, higher than the last 20-session average of 6.67 billion shares. Advancers outnumbered decliners on the NYSE by a 2.26-to-1 ratio. On Nasdaq, a 2.06-to-1 ratio favored advancing issues.
How did the Benchmark Perform?
The Dow gained 238.51 points, helped primarily by Visa (V – Free Report) , which posted better-than-expected profits and raised its earnings forecast. This saw Visa’s shares surge 4.9%. Visa has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The S&P 500 too gained 27.54 points on strong corporate earnings. Of the major 11 sectors of the S&P 500, nine ended the day in positive territory, with the Technology Select Sector SPDR (XLK) gaining 1.8%. The tech-heavy Nasdaq added 114.94 points with tech stocks, particularly Facebook (FB – Free Report) , leading the rally.
Facebook, Other Tech Stocks Rally
U.S. stocks rallied on Thursday on robust corporate earnings from some of the biggest U.S. companies. The rally was led by Facebook, which posted better-than-expected results, comfortably surpassing both earnings and revenue estimates. (Read More)
Shares of Facebook had been suffering since the social media giant got embroiled in a date misuse scandal in March. However, the robust quarterly results reinstated investors’ confidence in the stock, which saw the company’s shares surging 9.1%.
Moreover, other tech companies to put up a good show on Thursday, which saw all three indexes, particularly, the Dow, closing sharply higher. Shares of Amazon (AMZN – Free Report) jumped 4%. The e-commerce retail behemoth reported a 43% rise in first-quarter revenues. Also shares of chipmaker Advanced Micro Devices (AMD – Free Report) gained 13.7% on strong quarterly results.
10-Year Treasury Falls from 3% Mark
Investors’ confidence rebounded as they shed worries over rising interest rates. The 10-year Treasury yield retreated from the four-year-high of 3% after touching 3.03% a day earlier. This gave stocks a boost, thus helping markets to close in positive territory.
Strong Economic Data
Durable goods orders increased 2.6% in March, far better than the expected 1.6%. The rise was mainly due to an increase of 44.5% in commercial plane orders. Moreover, weekly jobless claims too totaled 209,000, lower than expected 230,000. Also, trade deficit in goods too fell to $68 billion, decreasing 10.3%. Robust economic data gave investors’ confidence a boost that saw a rally in equities.
Stocks That Made Headlines
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