- US stocks surged on Thursday after a slew of earnings showed that consumers are still spending money.
- Disney soared more than 6% after its earnings release showed strength in its theme parks division.
- Better-than-expected earnings from Wynn Resorts, Sonos, and Tapestry also showed a consumer that is on solid footing.
US stocks surged on Thursday after a slew of earnings from consumer-oriented companies bested investor expectations.
Disney surged 6% after its theme park division posted solid results and the company said it would embark on a restructuring strategy that would save billions of dollars and cut thousands of jobs.
Other companies that reported solid earnings results included Sonos, PepsiCo, Tapestry, Ralph Lauren, and Wynn Resorts, all consumer-driven companies that suggest the consumer is still spending money and remains on solid footing.
So far 63% of S&P 500 companies have reported fourth-quarter earnings results. Of those companies, 68% have beaten profit estimates by a median of 6%, while 63% have beaten revenue estimates by a median of 4%, according to Fundstrat.
Here's where US indexes stood shortly after the 9:30 a.m. ET open on Thursday:
- S&P 500: 4,152.66, up 0.85%
- Dow Jones Industrial Average: 34,197.21, up 0.73% (248.20 points)
- Nasdaq Composite: 12,053.11, up 1.2%
Here's what else is happening this morning:
- Robinhood's board of directors authorized a plan to purchase FTX founder Sam Bankman-Fried's stake in the company worth more than half a billion dollars.
- Robinhood ended up down $57 million in a single day after a glitch let its trading app customers temporarily short a meme stock, according to company executives.
- Chinese e-commerce giant Alibaba is testing its own rival to ChatGPT, joining the tech race to tap into investors' frenzy over artificial intelligence products.
- Data from the Bloomberg Billionaires Index show the world's 10 richest people have added $139.8 billion to their net worth since the beginning of January, as stocks staged a comeback from a dismal 2022.
In commodities, bonds and crypto:
- West Texas Intermediate crude oil fell 0.79% to $77.85 per barrel. Brent crude, oil's international benchmark, dropped 0.83% to $84.38.
- Gold rose 0.40% to $1,898.20 per ounce.
- The yield on the 10-year Treasury fell five basis points to 3.59%.
- Bitcoin jumped 0.84% to $22,761, while ether jumped 1.16% to $1,643.