The Nasdaq index hit a record high on Thursday, led by gains in mega-cap companies including Apple Inc and Amazon.com ahead of their earnings reports, while solid results from Caterpillar and Merck gave investors disappointing GDP data. helped to remove.
At 11:00 am, the Dow Jones Industrial Average was up 202.48 points, or 0.57%, at 35,693.17, the S&P 500 was up 35.65 points, or 0.78%, at 4,587.33 and the Nasdaq Composite was up 145.69 points, or 0.96. %, at 15,381.53.
Ford Motor Co jumped 11.2% after topping third-quarter profit estimates and forecasting its full-year earnings.
Caterpillar Inc added 2.9% after reporting quarterly gains on higher commodity prices, while its shares rose 4.0% from a quarterly beat and forecast by drugmaker Merck & Co.
Ten of the 11 key S&P sectors advanced in early trading, with technology and real estate being among the top gainers.
A Commerce Department report shows the US economy grew at a 2% annual rate last quarter, as COVID-19 infections rose, strained global supply chains and fueled labor and goods shortages.
Labor market conditions in the United States continued to improve, with the number of Americans filing new claims for unemployment benefits falling to a 19-month low last week.
“Slow growth in the third quarter was the result of a normalization of spending activity and significant constraints. There are signs of better growth in the fourth quarter,” Bernd Weidensteiner, senior economist at Commerzbank, said in a note.
“(The data) will not preclude the Fed from making a decision on the sequential end of its bond purchases next week, given the good conditions on the labor market and rising price risks.”
The stellar earnings report has propelled the benchmark S&P 500 index and the Dow Jones Industrial Average to record highs this week, while bringing the tech-heavy Nasdaq down just 0.4% from its all-time peak hit on Sept.
According to data from Refinitiv, profits of S&P 500 companies are expected to grow 37.6% year-over-year in the third quarter, which exceeds the 29.4% growth expected at the start of earnings season.
Apple Inc and e-commerce giant Amazon.com’s earnings report will also take note after the market closes on Thursday, wrapping up a largely upbeat reporting season for mega-cap technology stocks.
Apple shares rose 2.1%, giving the biggest boost to the S&P 500 and Nasdaq, followed by gains in Tesla Inc.
For the Federal Reserve’s policy meeting next week, the market’s focus has shifted beyond pricing to a potential taper of asset purchases this year and the timing of interest rate hikes next year.
Also on the radar, US President Joe Biden will urge Democrats in Congress to support a new $1.75 trillion framework for economic and climate change spending.
eBay Inc. fell 7.9% after the e-commerce firm forecast a decline in holiday-quarter revenue.
Advancing issues declined from a 2.26-to-1 ratio on the NYSE and 2.40-to-1 on the Nasdaq.
The S&P index recorded 22 new 52-week highs and two new lows, while the Nasdaq recorded 54 new highs and 60 new lows.
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