Dow jumps more than 200 points
Chipotle up more than 20% after beating Wall Street estimates
eBay falls 5% after disappointing second quarter outlook
Thursday ended on a good note for U.S. benchmarks, with the major indices climbing higher.
The Nasdaq was up more than 110 points by the closing bell.
The S&P 500 saw modest gains as well, ending the day more than 25 points higher.
The TSX jumped more than 120 points, boosted by financial stocks and rising oil prices in the energy sector.
Shares of Facebook Inc (NASDAQ:FB) were up more than 9% by the closing bell. Despite two days of Congressional hearings looking into user privacy issues, the social media giant’s first-quarter earnings surpassed Wall Street estimates, reporting US$1.69 earnings per share versus estimates of US$1.35.
Auto parts company LKQ Corp was one of the top decliners of the day with shares falling more than 19% after disappointing first-quarter earnings. The Chicago-based company’s revenue beat the Wall Street estimate of US$2.63bn, but its adjusted EPS was US$0.55, missing estimates of US$0.59.
eBay Inc (NASDAQ:EBAY) shares were down more than 5% after reporting its first-quarter results. While revenue and profit were in line with estimates, the e-commerce site’s outlook for the following quarter wasn’t what investors were hoping to see.
12.30pm: Afternoon update
US stocks are trying hard to claw back some of the losses sustained earlier in the week, with all three of the main indices marching higher on Wednesday.
Wall Street has been boosted by US 10-year bond yields pulling back from the 3% level, reducing fears of higher borrowing rates for companies already facing rising costs.
Strong results in technology stocks have also boosted the markets here in New York.
The S&P 500 climbed 19.3 points or 0.7% to 2,658.7. Chipotle Mexican Grill Inc (NYSE:CMG) is the index’s big winner, soaring 24.2% to US$421.74 on positive earnings and interesting ideas suggested by new chief executive Brian Niccol.
As for the tech-heavy Nasdaq, that is 101.7 points or 1.4% ahead to 7,106.2, led by O’Reilly Automotive Inc (NASDAQ:ORLY), which has jumped rising 11% to $252.50 on solid first-quarter numbers.
Looking further down, the Russell 2000 small-cap index is up 3.8 points or 0.2% to 1,554.2, with boat retailer MarineMax Inc (NASDAQ:HZO) soaring 22% to US$21.40 after posting better-than-expected second quarter earnings and lifting full-year guidance.
And the Morningstar Small Cap index is also in the black, up 28.5 points or 0.3% to 9,693.8.
US indices opened higher Thursday, led by an 8.5% surge in Facebook stock in the wake of its impressive first-quarter results and a 12.15% jump from Advanced Micro Devices, Inc after the semiconductor company also blew away market expectations Wednesday.
Shortly after the bell, the Dow Jones rose 56 points to 24,143 while the S&P 500 inched up 9 points to 2,648. The tech-heavy Nasdaq, meanwhile, was up 55 points at 7,058 and up in Toronto, the TSX gained 32 points at 15,541.
Earnings were at the forefront of investors’ thinking in early trade as more quarterly results piled up this week.
Chipotle Mexican Grill soared 19.5% after the burrito chain earned US$2.13 per share, above the $1.56 estimate, on revenue of US$1.15bn. Also up on an earnings beat was O’Reilly Automotive, which advanced 13.2%.
Driving markets higher is the easing of concerns about borrowing rates after the European Central Bank left interest rates unchanged. This news prompted the yield on 10-year Treasuries to fall back below 3% to 2.99%. The value of the dollar also fell, with the British pound climbing 0.5% to US$1.3994 and the euro up 0.2% to US$1.2185.
Shares posting sharp declines on earnings news included the autoparts maker LKQ Corp, which fell 16.8% in early trade and eBay Inc, which dropped 5.6% after the online auction house delivered a disappointing forecast for revenue growth.