US stocks closed sharply higher bolstered by better-than-expected earnings and economic data that helped ease investor concerns about inflationary pressures and a slowdown in growth.
The Dow Jones Industrial Average rose 534.75 points or 1.6% to close at 34,912.56, while the technology-heavy Nasdaq Composite climbed 1.7%. The S&P 500 rallied 1.7%, on pace for its best day since March.
Wells Fargo, Bank of America (NYSE:BAC), Citigroup, and Morgan Stanley (NYSE:MS) each reported a big jump in third-quarter profit. Investors largely rewarded the companies with Bank of America (NYSE:BAC) closing up 4.47% to $45.07, while Morgan Stanley (NYSE:MS) rallied 2.5% after beating estimates handily.
12.05 pm: Dow jumps more than 400 points as weekly jobless fall to pandemic era lows
US stocks advanced sharply in noon trading following better-than-expected financial results from Bank of America (NYSE:BAC), Morgan Stanley (NYSE:MS), and Citigroup.
At midday, the Dow gained 491 points to 34,868, while the S&P 500 rose 67 points at 4,431 and the tech-heavy Nasdaq surged 233 points, or 1.6%, to 14,805.
“So far, the overwhelming majority of large US companies have been able to generate higher profitability despite rising labor costs because sales growth has been so robust,” UBS Global Wealth Management chief investment officer Mark Haefele said.
“We expect the same to be true in 3Q,” Haefele added.
Stocks also got a boost from initial unemployment insurance claims, which totaled 293,000 last week – the first time that number was below the 300,000 level during the pandemic.
The Dow’s upward move was led by Caterpillar Inc, which gained more than 2% after Cowen initiated coverage of the equipment maker with an “Outperform” rating.
11am: Proactive North America headlines:
Adyton Resources (TSX-V:ADY, OTCQB:ADYRF) reports 88% increase in total gold resources
Arizona Silver releases ‘good gold grades’ from undrilled segment of the Philadelphia vein
Tetra Bio-Pharma (TSX:TBP, OTCQB:TBPMF) advancing breakthrough pain drug QIXLEEF to late clinical development stage
MGX Minerals says it will begin exploring its GC property for nuclear and space metals
Fortitude Gold (OTCQB:FTCO) announces preliminary 3Q production of 11,478 gold ounces
Bam Bam says copper, silver, and gold from soil geochemistry expands targets at Majuba Hill
Kootenay Silver expands land position at its Columba silver project in Mexico
Avalon GloboCare successfully co-develops novel platform of S-layer coated emulsome technology for next-generation drug delivery and cellular immunotherapy
Braxia Scientific CEO Roger McIntyre to join Lamar Odom and Zappy Zapolin in panel discussion on ketamine treatment for mental health
Cabral Gold continues to expand the MG gold-in-oxide blanket at Cuiú Cuiú gold district in Brazil
ElectraMeccanica (NASDAQ:SOLO) announces deal with Bosch to launch initial service network for flagship SOLO EV
Milestone Scientific initiates international expansion for its CompuFlo Epidural Instrument
Mindset Pharma says it has expanded benchmark data for psychedelics under COPE program with InterVivo Solutions
Heritage Cannabis and Opticann in exclusive partnership with Canada’s largest advocacy association for retirees
Empower Clinics says subsidiary wins contract with British Columbia First Nations Health Authority to provide diabetic testing products
Medallion Resources scales up rare earth separation research program with Purdue University
Levitee Labs (CSE:LVT) announces appointment of Dr Mohammed H. Mosli, as chief people officer of Levitee Clinics and Levitee Pharmacies
CO2 GRO announces another commercial feasibility of its CO2 Delivery Solutions with licensed cannabis producer in Ontario
Spyder Cannabis announces launch of new retail dispensary brand, Offside Cannabis
The Valens Company (TSX:VLNS, OTCQX:VLNCF) sees 3Q revenue climb 16% to C$21M on strong retail demand
Manganese X subsidiary joint-venture partner PureBiotic AIR receives positive results from Mist Solutions testing
Renforth Resources reports 130m of continuous visible nickel and zinc on surface at Surimeau project
First Cobalt (TSX-V:FCC, OTCQX:FTSSF) granted second key permit for its North American battery materials refinery
Versus Systems to power fan engagement for multiple NHL teams as 2021-2022 hockey season kicks off
Fobi AI (TSX-V:FOBI, OTCQB:FOBIF) partners with REVELXP to deploy its Wallet pass technology at college football hospitality events
Bank of America (NYSE:BAC), Citigroup and Wells Fargo all beat quarterly estimates as loan losses released
Alpine 4 Holdings says it has been approved by The Nasdaq Stock Market; names new chief financial officer
Karora says it’s on target to meet 2021 guidance following record 3Q gold production
Silvercorp Metals buys Kuanping silver-lead-zinc-gold project via online auction; reports exploration results from its LMW mine
Agra Ventures subsidiary Farmako launches new THC and CBD testkit for German pharmacies
Bragg Gaming Group (TSX:BRAG, NASDAQ:BRAG) Inc. says ORYX Gaming subsidiary set to significantly boost its global profile after integration deal with Playtech
KetamineOne plans inaugural research studies targeting depression and post-traumatic stress disorder
NEXE Innovations announces addition of three new beverages to its XOMA Superfoods line
HempFusion (TSX:CBD.U, OTCQX:CBDHF) Wellness promotes Maria Leal to the post of chief financial officer
9.39am: US stocks start higher on Thursday
Wall Street shares started on the front foot Thursday as traders appeared to be buoyed by the latest jobs data alongside better-than-expected company earnings.
The Dow Jones Industrial Average gained over 382 points at 34,760. The S&P 500 added around 40 to stand at 4,404.
The tech heavy Nasdaq index added almost 134 points at 14,705.
It comes as US claims for unemployment benefits fell below 300,000 for the first time since the pandemic in the seven days to October 9.
According to a report, only 293,000 people applied for benefits as companies desperately try and hire more staff amid labor shortages. Economists had forecast that new claims would drop to a seasonally adjusted 318,000.
On the corporate front, banking behemoths, Bank of America (NYSE:BAC) (up 2.7%), Morgan Stanley (NYSE:MS) (up 1,48%), Citigroup (up 0.3%) all beat third quarter earnings expectations.
6.35am: US stocks seen opening higher
US stocks are expected to open higher after JP Morgan kicked of the US earnings season with stronger-than-expected quarterly results, with revenue and profits boosted by a continued flow of initial public offers and takeover deals.
Futures for the Dow Jones Industrial Average futures gained 0.58% in Thursday pre-market trading, while the broader S&P 500 index rose 0.64% and those for the tech-heavy Nasdaq 100 added 0.76%.
Stocks closed mixed on Wednesday as investors mulled when the Federal Reserve could pull back its easy monetary policy and considered latest inflation data.
Minutes released from Federal Open Market Committee’s September meeting showed the central bank could begin tapering its asset-purchase program as soon as mid-November. September’s consumer price index (CPI) rose by a greater-than-expected 0.4% from the previous month and 5.4% year over year.
At the close, the Dow declined by 0.53 points, a fractional loss, to 34,377, while the S&P 500 rose 0.31% to 4,363 and the Nasdaq gained 0.73% to 14,571.
“Equity markets appear to have shaken off their caution of recent weeks and are moving higher in unison this morning,” said Chris Beauchamp, chief market analyst at IG.
“Yesterday’s strong US CPI print and this morning’s robust Chinese PPI figure have not dented investor enthusiasm for stocks after US earnings season got off to a good start from JPMorgan.
“The earnings call provided plenty of reasons to be cheerful, with the bank noting that the overall US recovery was intact and credit demand was still strong.”