Stocks rebounded Thursday from yesterday's steep decline, with
all three of the major market gauges posting gains after revised
GDP data provided new evidence that the U.S. economy is still
strengthening. Better-than-expected earnings by Facebook (
) as well as Dow components 3M (
) and Visa (
) contributed to the bullish sentiment as investors set aside
worries about turmoil in emerging market and another reduction in
U.S. monetary stimulus from the Federal Reserve.
Fourth-quarter GDP was revised lower from initial estimates,
falling to 3.2% from 4.1% but still beating market estimates
looking for 3.0% GDP. Investors were buoyed by several components
of the index showing strong gains, including consumer and business
spending, exports and inventories. The only segment that was
relatively sluggish during Q4 was housing, which was hurt by rising
interest rate and extreme winter weather late last year.
Initial jobless claims jumped 19,000 during the latest survey
week to 348,000 new claims, well above estimates of 330,000, but
remained at a level consistent with moderate labor market
Pending home sales were also bearish, plunging 8.7% in December
compared with the market consensus expecting a much more moderate
Crude oil for March delivery 95 cents to $98.25 per barrel.
March natural gas plunged 41 cents, or about 7.5%, settling at
$5.02 per 1 million BTU giving back nearly all of yesterday's
advance after government data showed a slightly smaller drop in
inventories last week than was expected and forecasts for warming
weather in many parts of the country.
Metals futures fell. February gold fell $20.01 to settle at
$,1241.90 per ounce while March silver slid 42 cents to $19.13 per
ounce. March copper was off a penny to $3.23 per pound.
Here's where the major indices closed:
Dow Jones Industrial Average up 19.98 (+1.13%) to 1,794.18
S&P 500 up 19.98 (+1.13%) to 1,794.19
Nasdaq Composite Index up 71.69 (+1.77%) to 4,123.12
Hang Seng Index down 0.48%
Shanghai China Composite Index down 0.82%
FTSE 100 Index down 0.09%
(+) FB, (+14.2%) Social networking firm climbs to new all-time
high, receives a slew of price target increases after Q4 non-GAAP
earnings of $0.31 per share top estimates by $0.04. Quarterly sales
of $2.59 bln beat by $220 mln.
(+) UA, Q4 EPS of $0.59 per share, beating estimates by $0.06.
Revenue rises 35% year over year to $682.76 mln, topping the
consensus view by $62.83 mln. Raises FY14 guidance, now sees
revenue growing 22% to 23%.
(+) ALXN, Reports Q4 earnings of $0.87 per share, ex items,
$0.04 better than Street view. Revenue climbs 37.9% year over year
to $441.9 mln, topping estimates by $11.23 mln. Guides FY14 EPS,
revenue above consensus.
(-) CTXS, (-8.3%) Falls to new 52-week low after Q4 revenue of
$802 mln lags Street by $3 mln. EPS of $1.04 tops by $0.06 per
share. Q1,FY14 outlook also trail estimates, prompting at least six
analyst downgrades today.
(-) ADT, Falls to an all-time low after posting fiscal Q3
earnings, of $0.43 per share, ex items, down from a $0.44 profit
last year and trailing Street view by $0.01 per share. Revenue rose
3.7% to $839 mln, missing analyst expectations by $11 mln.
(-) KMT Fiscal Q2 EPS of $0.52 trails expectations by $0.09 per
share. Lowers outlook for FY14 earnings but still within Capital IQ
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