Thursday October 27th


Dow futures jump more than 200 points after a better-than-expected GDP report

U.S. stock markets index futures gained on Thursday after the economy grew at a faster-than-expected pace in the third quarter. Dow Jones Industrial Average futures climbed 293 points, or 0.9%. S&P 500 futures added 0.3%. Nasdaq 100 futures were lower by 0.2%. U.S. GDP increased increased at a 2.6% annualized pace for the period, against the Dow Jones estimate for 2.3% growth. The report, the first quarter of positive growth for 2022, eased investors’ concerns about a recession. Initial jobless claims for the week ended Oct. 22 totaled 217,000, a 3,000 increase from the prior week’s unrevised level of 214,000, according to the Labor Department. However, the figure is lower than StreetAccount estimates of 223,000. Continuing claims were more than 1.4 million. But the tech sector continued its recent woes, which have weighed down the Nasdaq. Shares of the Facebook parent company plummeted 20% in premarket trading on a weak fourth-quarter forecast and disappointing third-quarter earnings. The company also said it would lose even more money next year building out the metaverse. The report led to several analysts downgrading the stock. Traders also pored over earnings reports from other companies. ServiceNow surged more than 12% after an earnings beat. Ford Motor, meanwhile, dipped 2% after the company posted its latest results. Stocks are coming off a mixed session, with the S&P 500 and Nasdaq Composite falling for the first time in four days on Wednesday, while the Dow ended the day marginally higher. For the week, all the major averages remain in positive territory, with the Dow and S&P up more than 2% and Nasdaq roughly 1% higher. The Dow is on pace for its fourth positive week in a row since its five-week streak ended in November 2021. “Investors are still struggling for direction and want clarity with respect to earnings and what the Fed will do going forward,” said Adam Sarhan, CEO of 50 Park Investments. “Remember, the market is a forward-looking mechanism and the earnings reports tell us what happened in the past. Investors want clarity and certainty. Right now, we still have a lot of uncertainty on multiple levels.” Comcast and McDonald’s shares traded up 8% and 2.9%, respectively, following earnings reports that beat expectations before the bell. Cigarette company Altria Group shed 2.4% after missing expectations on earnings per share and revenue. Big technology earnings continue Thursday with results from Amazon and Apple. Shares in the Asia-Pacific were mixed Thursday as investors digest economic data in the region. The Hang Seng index was up 0.71% in the final hour of trade after jumping more than 3% in early trade, boosted by tech stocks. The Hang Seng Tech index rose more than 4% early in the session and was last up 0.9%. The broader Hang Seng index lost 5% this week after seeing sharp falls on Monday. In Australia, the S&P/ASX 200 gained 0.5% to 6,845.10 and South Korea’s Kospi added 1.74% to 2,288.78. Japan’s Nikkei 225 was 0.32% lower at 27,345.24 while the Topix lost 0.66% to 1,905.56. Mainland China’s Shanghai Composite slid 0.55% to 2,982.90, and the Shenzhen Component shed 0.63% to 10,750.14. Oil steadied on Thursday following a rally of nearly 3% in the previous session, as concern over slack demand in China balanced optimism from record U.S. crude exports and sign that recession concerns are abating. Global investors dumped Chinese assets early this week on fears about growth, with the economy beset by a zero-COVID policy, a property crisis and falling market confidence. China is the world’s biggest energy consumer. Brent crude rose 48 cents, or 0.5%, to $96.17 a barrel. U.S. West Texas Intermediate (WTI) crude also gained 46 cents, or 0.5%, to $88.39. Gold prices rose on Thursday, as the U.S. dollar and Treasury yields fell on mounting expectations of slower monetary policy tightening by the Federal Reserve later in the year. Spot gold rose 0.3% to $1,669.16 per ounce by 0116 GMT, after hitting a two-week high on Wednesday. U.S. gold futures were up 0.3% at $1,673.30. The dollar index was little changed after hitting its lowest level since Sept. 20 earlier. A weaker dollar makes greenback-priced gold ande oil less expensive for overseas buyers.