Close Update: Earnings-Fueled Rally Lifts Dow, S&P 500 Back into the Black for 2018

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Wall Street's major averages closed near their highs of the day with the Dow Jones Industrial Average and S&P 500 pushed back into positive territory for the year as strong quarterly results from bellwether stocks restored investor appetite for risk and drove the blue chip index more than 400 points higher at the close.

Bargain-hunting in beaten down chipmaker stocks coupled with outsized gains in the software sector on the heels of Microsoft's impressive results fueled a 3% gain in the Nasdaq Composite, it's only second day in the green over the past seven sessions. And after six consecutive days negative, the S&P 500 closed with a gain with consumer discretionary, communication and tech stocks leading advancers.

Other headliners reporting on Thursday included Tesla ( TSLA ), Ford ( F ) and Twitter ( TWTR ) all of which reported better-than-expected results and closing with sizable gains. Tesla rallied to its highest level since this summer after swinging to a profit, while Twitter gained more than 15% as investors cheered a 9% gain in daily average users.

In economic news, September durable goods orders rose 0.8%, better than the 1.5% drop expected, after bouncing 4.6% in August.

The September advance goods trade deficit widened to -$76.0 billion (consensus: -$74.7 billion), a new record, from August's -$75.5 billion (revised from -$75.8 billion).

Initial weekly jobless claims bounced 5,000 to 215,000 in the week ended Oct. 20, following the 5,000 decline to 210,000 in the prior week.

The September pending home sales index increased 0.5% to 104.6, beating the 0.0% expected, following a 1.9% drop in August to 104.1 (revised from -1.8% at 104.2).

Looking ahead to Friday, data includes the first look at Q3 GDP (est 3.3%) and the final Univ of Michigan consumer sentiment index (unchanged at 99.0). For the major indices, though still oversold, the Dow will face considerable resistance at its 200-day moving average. And after a very challenging week, the Dow, S&P 500 and Nasdaq are still lower for the week.


Dow Jones Industrial Average was up 401.13 points (+1.63%)

S&P 500 was up 49.47 points (+1.86%)

Nasdaq Composite Index was up 209.94 points (+2.95%)


FTSE 100 was up 0.59%

Nikkei 225 was down 3.72%

Hang Seng Index was down 1.01%

Shanghai China Composite Index was up 0.02%


(+) TWTR (+15.47%) Q3 results beat expectations

(+) F (+9.90%) Tops Q3 estimates

(+) MSFT (+5.84%) Blows past Q1 expectations


(-) TTNP (-17.55%) Retraces Wednesday's gains made after Trump signs bill to slow opioid addiction

(-) AMD (-15.45%) Posts mixed Q3 results

(-) ABX (-4.12%) Q3 EPS misses forecasts, but sales top

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2016 All rights reserved. Unauthorized reproduction is strictly prohibited.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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