Amidst reporting of a slight surge in the corporate earnings and optimistic economic reports, U.S. stocks rose and halted the last two days of losses for the Standard & Poor’s 500 Index. The best news came from Facebook whose earnings drove outsize gains in the Nasdaq Composite Index. Additionally, the Dow Jones Industrial Average shrugged off early losses and fared better later.
In fact, The Wall Street Journal reported that Facebook trades accounted for about 10% of the market’s overall trading volume. Whereas materials and utility stocks went higher, the stocks for industrial and financial companies which were doing well over the last couple of weeks went lower.
Thanks to the Facebook’s gains, The Nasdaq added 25 points or 0.7% to reach 3604. Facebook’s stocks surged when traders started buying them in higher volumes. The major contribution towards the increased value of Facebook’s stocks is its better-than-expected second-quarter earnings and revenue.
Rally of stocks started when Facebook reported record earnings and continued growth in its mobile-advertising business. Its stocks surged 30 percent and stood at $34.36 which in fact is the highest in the last fourteen months.
Similarly, Visa recorded a growth of 4.2 percent and racked $194.61. The stock prices went higher when the company reported fiscal third-quarter profit. On the other hand, Dow constituent 3M also fared better after it reported earnings which were as per the expectations.
However, there does not seem to be a good time for General Motors as its stock fell further. The company recently declared that it recorded a 24% drop in quarterly profit from a year earlier. On the other hand, it was a rally time for TripAdvisor which racked profits in the last quarter where its earnings increased by 26%.
Another company whose stock went up was Qualcomm which received a growth of 3.31%. The stock’s prices increased as this semiconductor maker earned what it had estimated earlier in its plan and even performed better than that.
Other losers in the stock market were home builders PulteGroup Inc. and D.R. Horton Inc. Whereas PulteGroup Inc. fell more than 10%, D.R. Horton Inc. scored 8.6% loss. Each of the two companies had their reasons behind the fall; whereas, PulteGroup Inc. fell because it could not meet the Wall Street estimates, D.R. Horton Inc. could not sell more thanks to high interest rates.
Similarly, Xerox Corp. edged 0.3% lower after reporting better-than-estimated second-quarter earnings and reaffirming its full-year outlook.
To contact the reporter of this story: Jonathan Millet at email@example.com