Wall Street stocks jumped on Thursday (22/10) local time triggered the majority of positive third-quarter corporate earnings, which helped increase the market over the shock of new claims for unemployment benefits.
Dow Jones Industrial Average rose 131.95 points (1.33 percent) to close at 10,081.31, “rebound” from losses in the previous session.
The Nasdaq composite index rose 14.56 points (0.68 percent) to 2165.29 and the broad market index Standard & Poor’s 500 added 11.51 points (1.06 percent) to 1092.91.
Flick a weak market started in early trading as investors weighed data showing new unemployment claims rose again after falling for two weeks.
But the stock quickly rising as more companies reported earnings better than expected. “Today’s report reaffirms earnings flowing our belief that third-quarter earnings will be good and in many cases even better than expected after
considering that the estimates for the third quarter is more aggressive than before, largely due to reported earnings for the second quarter, “said Gregory Drahuschak of Janney Montgomery Scott LLC.
Intensive flow of earnings reports last until next week and then shrink from November. “The report earnings are in full swing, with many companies reported better earnings than expected, and some of which reported revenue growth versus last year,” said analyst Charles Schwab & Co. in a client note.
Previously, the Department of Labor said the seasonally adjusted number of jobless claims in the week to October 17 rose 2.1 percent or 11,000 to 531,000 of the data was revised 520,000 the previous week.
That’s higher than the 515,000 expected by most economists but moving an average of four weeks, fell slightly, to 532,250 – a decrease of 750 revised average of 533,000 the previous week.
The total number of recipients of unemployment benefits Americans also shrinking. “Statistically, the change can be ignored, but in the real world it is said that a reminder that the labor market is still very weak 22 months to the official recession,” said Patrick O’Hare from Briefing.com.
Among the major companies which declared its financial results passed Wall Street estimates is a fast-food restaurant chain McDonald’s, whose shares rose 2.01 percent to 59.50 dollars and pharmaceutical giant Merck rose 0.58 percent to 32.87 dollars.
Other phone companies including AT & T, up 0.62 percent at 26.10 dollars, Travelers insurance which jumped 7.66 percent to 51.70 dollars, and the 3M manufacturing grew 3.22 percent to 78.79 dollars.
Microsoft increased 0.04 percent to 26.59 dollars after the software giant launched the first operating system within three years, Windows 7.
