US stock index futures rose Thursday after blowing out results from two of the biggest tech companies: Apple and Facebook.
Futures contracts linked to the Dow Jones Industrial Average gained 182 points. The S&P 500 futures rose 0.7%, with the benchmark setting another record. Nasdaq 100 futures were up 1%.
Investors pointed to strong earnings results from both iPhone maker Apple and social media platform Facebook to explain Thursday’s gains.
Sales rose 54% for the quarter, with each product category posting double-digit growth, according to Apple. The company also announced it would increase its dividend by 7% and approved share buybacks of $ 90 billion. Apple stock rose nearly 3% in early trading.
Facebook sales increased 48% due to more expensive ads. Facebook gained more than 7% in the pre-market. Qualcomm shares rose 5% in early trading after seeing sales jump 52%.
Cruise stocks rose after the CDC announced that crossings from US ports could begin in mid-July. Carnival and Norwegian stocks rose more than 2% in premarket trading.
“The primary market trend remains positive,” said Keith Lerner, chief market strategist at Truist. “We expect a more troubled environment, however, as tensions between better economic growth and better earnings prospects versus the potential for higher taxes and rising interest rates as the economy normalizes,” he added.
Thursday marks the 100th day of President Joe Biden’s tenure. On Wednesday evening, he gave his first address to a joint congressional session where he unveiled his previously popular agenda, which included a $ 2 trillion infrastructure plan and a freshly unveiled $ 1.8 trillion plan for families, Includes children and students.
Thursday is the busiest day of the quarterly earnings season. Around 11% of the S&P 500 is to be updated quarterly.
McDonald’s released its results before the opening bell on Thursday, telling investors that its sales have finally passed pre-pandemic levels. The Dow component also increased the prospects for system-wide revenue growth.
Caterpillar exceeded expectations and traded higher while Merck traded lower after disappointing results. Amazon, Gilead Sciences, Twitter, US Steel and Western Digital will publish quarterly results after the market closes.
The economic data released on Thursday will give investors a glimpse of the progress of the economic recovery.
First quarter GDP is released at 8:30 am CET and according to Dow Jones estimates, economic activity is expected to grow 6.5% annually. The first unemployment claims are also published. Economists polled by Dow Jones expect an increase of 528,000, roughly the same as last week. Outstanding home sales are also due.
The major averages closed in the red during normal trading on Wednesday. The Dow lost 165 points and lost 0.48%. The S&P 500 hit a record high but failed to sustain those gains and closed 0.08% lower. The Nasdaq Composite was down 0.28%.
The Federal Reserve said Wednesday that it would keep interest rates near zero. The S&P slid from its high after Federal Reserve Chairman Jerome Powell said during a news conference following the Federal Open Market Committee’s decision that there was some signs of froth in the market.
“Interest rates are unchanged for now and despite the improvement in economic data, the cone talk was off the table at today’s Federal Reserve meeting,” said Bethany Payne, portfolio manager at Janus Henderson.
“As vaccination rates accelerate, employment boosts and expansive fiscal policies continue to support household and corporate incomes, investors are now looking for signs of whether the central bank’s safety net may be pulled out sooner than expected,” she added.
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