Stocks gained on more signs the U.S. economy is recovering after third-quarter GDP bounced back by 33.1% and jobless claims continued to drop.
|I:COMP||NASDAQ COMPOSITE INDEX||11194.082256||+189.21||+1.72%|
The Nasdaq Composite, up over 1.5%, led the charge helped by Alphabet, Facebook and Apple, all of which gained more than 3% and report earnings after the closing bell. Amazon, which also reports, was up 0.5%.
|I:DJI||DOW JONES AVERAGES||26718.44||+198.49||+0.75%|
The Dow Jones Industrial Average tacked on 80 points or 0.3% while the S&P 500 rose nearly 1%.
Third-quarter GDP rebounded by a record 33.1% following a record second-quarter decline brought on by the coronavirus pandemic. Initial jobless claims data for the week ending Oct. 24 fell to 751,000 while continuing claims held at 7.7 million. Though improving, unemployment levels remain elevated.
Energy stocks remained a headwind with oil falling over 5% to the $35 per barrel level.
|XLE||ENERGY SELECT SECTOR SPDR ETF||28.25||+0.57||+2.06%|
|USO||UNITED STATES OIL FUND L.P.||25.55||-0.77||-2.93%|
MARVELL-INPHI $40B CHIP MERGER
In M&A news, Marvell Technology announced its intention to acquire Inphi for $10 billion to create a semiconductor giant worth $40 billion in market value, sending those shares soaring. This is the second blockbuster chip deal this week after AMD and Xilinx’s $35 billion tie-up.
|MRVL||MARVELL TECHNOLOGY GROUP LTD.||38.45||-1.07||-2.72%|
Separately, LVMH and Tiffany & Co. said in a statement the two companies had agreed upon a lower price for Tiffany shares, with LVMH buying Tiffany at $131.50 a share, down from the initial offer of $135 per share.
|TIF||TIFFANY & CO||130.84||+0.96||+0.74%|
COVID-19 FEARS GRIP SENTIMENT
Dealmaking helped sentiment after the Dow fell 942 points, a decline of 3.4%, as COVID-19 fears gripped investors across the globe as Germany and France announced new lockdown measures.
The U.S., in particular, continues to struggle with COVID-19, as the total number of cases in the country topped 8.8 million on Wednesday, according to data from Johns Hopkins University, resulting in at least 227,000 deaths.
Moderna shares rose after the company disclosed it took in $1.1 billion for COVID-19 vaccine orders which could be dispersed in 2021.
EARNINGS, EARNINGS, EARNINGS
On the earnings front, Comcast Corp. and e-commerce company Shopify were higher after both reported better-than-expected results.
Pinterest, Anheuser Busch Inbev NV and Tapestry shares also gained after reporting its quarterly results.
Approximately 40% of the companies in the S&P 500 have reported calendar third-quarter results, with more than 80% of them beating top- and bottom-line expectations.
Pending home sales for September were lighter-than-expected, with the reading showing a decline of 2.2%, versus expectations of a rise of 3.5%.
European indices also rebounded on Thursday, as the STOXX 600 rose 0.1% and the German DAX climbed 0.5%.