US stocks rise led by tech as jump in Meta shares pulls Nasdaq higher
- Stocks rose Thursday, fronted by gains in the tech-rich Nasdaq Composite.
- Meta's stock jumped following stronger-than-expected user activity in the first quarter.
Stocks rose Thursday, with tech shares higher after Facebook's parent company posted user figures that surpassed expectations, bolstering hopes for solid updates from other sector behemoths just as a losing month for stocks nears its end.
The Nasdaq Composite gained after posting losses in the past two sessions. It was getting a lift Thursday from Meta Platforms, formerly Facebook, whose shares soared after the company posted a first-quarter rise in daily active users by 3 million from the last quarter to 1.96 billion, beating analyst expectations of 1.95 billion. Per-share earnings of $2.72 were above the $2.56 estimate from FactSet but revenue of $27.91 billion fell short of Wall Street's consensus target.
Meta's stock surge arrived ahead of earnings due after today's closing bell from Amazon and Apple. Twitter rose after its first-quarter report was released. The social media platform was in focus this week after it agreed to sell itself to billionaire investor and Tesla boss Elon Musk for $44 billion.
Here's where US indexes stood at 9:30 a.m. on Thursday:
- S&P 500: 4,231.90, up 1.15%
- Dow Jones Industrial Average: 33,456.67, up 0.46% (154.74 points)
- Nasdaq Composite: 12,681.16, up 1.54%
"Today is another one of those days where traders are going to pay more attention to earnings than any other economic headwinds," said Naeem Aslam, chief market analyst at AvaTrade, in a note.
Investors appeared to set aside the Commerce Department's report that US gross domestic product shrank by 1.4% in the first quarter of 2022, a contraction that was unexpected.
"As for Apple and Amazon, there are two similar fundamentals. Firstly, how are these companies digesting inflation, and how are rising inventory prices influencing their profit margins. Secondly, if these companies are positioned well to face a higher interest rate environment," Aslam said.
Among Dow industrials, McDonald's gained after first-quarter results. Heavy equipment maker Caterpillar's earnings also beat expectations but the stock was lower.
The potential advances for Wall Street's big indexes would help curb what's set to be a down month of April, led by a 12% tumble in the Nasdaq Composite as it tilts back into a bear market.
Oil prices fell. West Texas Intermediate crude shed 0.4% to $101.64 per barrel. Brent crude, the international benchmark, lost 0.5% to $104.82.
Gold edged up 0.1% to $1,891.20 per ounce. The 10-year yield fell 7 basis points to 2.82%.
Bitcoin rose 1.5% to $39,690.35.