CNBC – UPDATED THU, JAN 26 20235:50 PM EST
Stocks rose Thursday as traders combed through the latest batch of corporate earnings and fourth-quarter gross domestic product that came in above expectations.
The Nasdaq Composite jumped 1.76% to settle at 11,512.41. The Dow Jones Industrial Average rose 205.57 points, or 0.61%, to end at 33,949.41, while the S&P 500 gained 1.10% to close at 4,060.43.
GDP data released Thursday showed the economy expanded at an annualized rate of 2.9% during the fourth quarter, the Commerce Department said. That’s above the Dow Jones estimate for 2.8%, but it represents a slight cooldown from the third-quarter reading.
“With today’s better-than-expected GDP number, I think investors are thinking maybe we can get away with a pretty soft, mild recession that is not likely to throw us into an even deeper bear market when all is said and done,” said Sam Stovall, CFRA Research’s chief investment strategist.
A mixed earnings season trudged on, with strong results from Tesla giving the tech-heavy Nasdaq and electric vehicle stocks a boost. Tesla jumped nearly 11% after posting record revenue and solid earnings. Beaten-up technology giants Microsoft, Nvidia, Amazon and Alphabet also gained. IBM fell about 4.5% despite a revenue beat.
Airline earnings rolled out Thursday, with Southwest falling 3% on a larger-than-expected loss fueled by its holiday meltdown. American Airlines rose 2.2% following a fourth-quarter beat. United and Delta also moved lower.
Elsewhere, Chevron added nearly 5% after announcing a $75 billion share repurchasing program.
All the major averages are headed for weekly and monthly gains. The Dow and S&P are up 1.7% and 2.2% this week, respectively. The Nasdaq has gained 3.3% this week and is on pace for its best month since July.
Focus now shifts to next week’s Federal Reserve policy meeting, where the central bank is widely expected to announce a 25 basis point increase as it battles high inflation. Investors will be on the lookout for clue into how much higher the Fed intends to hike before it cuts rates.
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