U.S. Stocks Rise as Strong Earnings Reports Drive Market
NEW YORK (AP) — U.S. stocks are on the rise Thursday, with the S&P 500 up 0.5% in early trading, helping to trim losses for the week. The Dow Jones Industrial Average also saw gains, up 146 points, or 0.4%, while the Nasdaq composite rose 0.7%.
The market was boosted by strong earnings reports from several big companies. Qualcomm saw an 8.4% increase after surpassing profit and revenue forecasts for the latest quarter. MGM Resorts International also surged 5.9% after reporting better-than-expected results, crediting increased traffic at MGM China.
Carvana saw a significant 35.1% increase after reporting better-than-expected results for the latest quarter, driven by strong sales. Peloton Interactive also jumped 8.4% after announcing cost-saving measures, including job cuts and the departure of its CEO.
However, not all companies fared well. Etsy experienced a 17.9% drop after only meeting analysts’ expectations for results and revenue. DoorDash also sank 12.5% after reporting a larger loss than expected.
In the bond market, yields were mixed following economic reports. While fewer U.S. workers applied for unemployment benefits than expected, a report on productivity growth raised concerns about inflation.
Federal Reserve Chair Jerome Powell’s comments on interest rates also influenced market sentiment. Traders are now expecting fewer rate cuts in 2024 than previously forecasted.
Stock markets abroad showed mixed results, with Hong Kong’s Hang Seng jumping 2.5% while other markets in China were closed for a holiday.
Overall, the market remains volatile as investors await the government’s monthly jobs update on Friday, which could further impact expectations for future rate cuts.
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AP writers Matt Ott and Zimo Zhong contributed to this report.
