US stocks were higher on Thursday as investors digested the release of gross domestic product data and another round of corporate earnings.
S&P 500 (^GSPC) rose 0.7% in afternoon trading, while the Dow Jones Industrial Average (^ DJI) added 0.3%. Technology-focused Nasdaq Composite (^IXIC) rose by about 1.2%, compared to Tesla (TSLA).
The benchmark 10-year US Treasury yield rose to 3.482% from 3.461% on Wednesday. The dollar index was little changed.
US GDP grew 2.9% per annum According to the company, the final quarter of 2022 is ahead of expectations. Bureau of Economic Analysis. Personal consumption expenditure (PCE), which accounts for two-thirds of domestic activity, increased by 2.1%, decelerating from 2.3% in the previous quarter.
Meanwhile, initial unemployment claims fell again to 187,000, the lowest level since April 2022. More signs of resilience For the US economy amid concerns over a potential recession.
New home sales rose 2.3% last month to reach 616,000 seasonally adjusted units for the year, according to the report. Thursday from the Census Bureau.
Thursday’s market action came after shares rallied from Wednesday’s session lows. Finish the session almost flat 12 out of 24 trade associations reached positive territory for the day.
Tesla (TSLA) Wednesday afternoon reported earnings after the bell. The results showed the electric car maker beat expectations in its latest quarter, netting $3.7 billion on revenue of $24.3 billion. Tesla has announced that it will ship about 1.8 million vehicles this year. This means that production will increase he by 37%. Shares rose 7% at noon Thursday.
International Business Machines Corporation (IBM) joined the wave of company layoffs, say cut About 3,900 workers. The reduction comes from Kyndryl Holdings, an IT services business that IBM spun off last year. As a result, the company said he would need a $300 million hit in the first quarter to pay for employee severance costs.
The hybrid cloud and infrastructure company also reported fourth-quarter revenue that slightly exceeded analyst expectations, with revenue of $16.69 billion. Adjusted earnings per share were $3.60, in line with analyst expectations. The stock fell 4% at the open.
Facebook Parent Meta (meta) stock surged on news of the company decided to restore Former President Donald Trump’s Instagram and Facebook accounts. The end of the ban stemming from the January 6, 2021 riots will come at the start of the 2024 presidential election season.
Elsewhere, American Airlines (AAL) Shares rose ahead of Thursday’s opening bell after the company announced expected profit. The industry is still in recovery mode and is expected to beat forecasts this year.
Southwest Airlines (Luv) shares traded after the carrier announced a loss of $220 million in the fourth quarter. holiday meltdown last month Thousands of flights have been canceled as a result. Southwest has lowered its revenue forecast for this year, he said, to $350 million as it addresses ongoing cancellations and declining bookings.
Comcast Stock (CMCSA) was flat after the media company reported better-than-expected fourth-quarter earnings with revenues of $30.55 billion. Comcast said it lost a total of 26,000 broadband customers after Hurricane Ian hit its southeastern coast in September. However, the company was able to turn around. This is partly due to increasing its share of advertising dollars to the network during the World Cup soccer tournament and the US presidential election in November.
In terms of corporate news, Akio Toyoda, President of Toyoda announced on Thursday he will step down as CEO on April 1 and be replaced by current Chief Branding Officer Koji Sato. Toyoda becomes the new chairman.
Visa (Ⅴ) and Intel (INTC) is in the queue for Thursday.
Earnings season is in full swing this week, with 173 companies reporting as of Wednesday. According to Bespoke Investments, six of them report a triple play in earnings. A triple play occurs when a company earns above the top and bottom lines and also raises its guidance forecast.
Investors and economists received a decision from the Bank of Canada on Wednesday in anticipation of the Federal Reserve’s decision next week. The central bank raised its benchmark by 25 basis points on Wednesday to 4.5%, the highest level in 15 years. This was an expected move, a clear indication that banks were ready to pause their aggressive tightening cycle.
Bank of Canada Governor Tiff Macklem has clarified that “this is a conditional moratorium”, but officials say the current policy rate is restrictive enough to restore price stability. is confident that
Meanwhile, the Federal Reserve is in a blackout period at home ahead of its next monetary policy meeting, which begins on January 31st.
But The Washington Post reported that Wednesday, Federal Reserve Vice Chairman Lael Brainard is seen as the frontrunner to head the National Economic Council at the White House. As it stands, Brainerd’s position as both governor and vice-chair currently holds until 2026.
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Dani Romero is a reporter at Yahoo Finance
