Shares rose Thursday afternoon despite the release of cooler-than-expected economic data, as Meta (META) earnings results build on a strong week of tech earnings.
The S&P 500 (^GSPC) rose 1.15%, while the Dow Jones Industrial Average (^DJI) gained 293 points, or 0.88%. The tech-heavy Nasdaq Composite (^IXIC) rose 1.69%.
The Bureau of Economic Analysis’s flash estimate of US gross domestic product (GDP) for the first quarter showed that the US economy grew 1.1% annually in the first quarter. Economists polled by Bloomberg had expected growth of 1.9%.
Meta shares rose as much as 14% after the company’s better-than-expected first-quarter earnings report after the close on Wednesday. Meta beat analyst expectations for revenue and earnings per share while forecasting second-quarter revenue in a range of $29.5 billion to $32 billion. Analysts had expected revenue of $29.48 billion for the second quarter.
Meta’s results came after Microsoft (MSFT) and Alphabet (GOOGL) beat expectations with reports after the market close on Tuesday.
Amazon (AMZN) and Intel (INTC) are expected to report earnings Thursday after the bell.
“The common theme here is that technology is stronger than most people think,” Jefferies analyst Brent Thill told Yahoo Finance Live after the release of Meta’s earnings. “Yes, we’re fading, but things are a lot better than the bears expected.”
Meanwhile, in the financial sector, pressure is mounting on First Republic as the stock fell 29.75% on Wednesday. The bank is pursuing “strategic options,” it said Monday, after losing more than $100 billion in deposits during March’s banking turmoil. After shedding more than half of its market cap over the past two trading sessions, First Republic stock is up about 13% in intraday trade on Thursday.
Southwest Airlines (LUV) shares tumbled more than 5% as the airline reported a larger-than-expected first-quarter loss on a one-time fee following a cancellation fiasco in December.
The story goes on
Caterpillar (CAT) shares fell as much as 3% despite beating Wall Street estimates for sales and earnings per share. Crocs (CROX) stock also fell on gains. Shares fell more than 20% on weaker-than-expected sales and earnings guidance for the second quarter.
Lyft shares were subdued in midday trade as the company confirmed previously reported layoffs. The company is shedding 26% of its workforce.
Investors will also digest more economic data on Thursday morning. The core personal consumption spending index, which excludes groceries and energy, rose to 4.9%, according to Bloomberg, 0.2% higher than analysts had expected. Weekly jobless claims in the US fell to 230k from the week before. Economists polled by Bloomberg had expected 248,000 applications.
Contracts to buy existing homes in the US fell for the first time since November 2022. The National Association of Realtor’s index of pending home sales fell 5.2% in March. According to Bloomberg, estimates were for a gain of 0.8%.
Josh is a reporter for Yahoo Finance.
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