
WASHINGTON (dpa-AFX) - After surging early in the session, stocks gave back some ground over the course of the trading day on Thursday but remained mostly higher. The tech-heavy Nasdaq hung on to a standout gain, ending the session at its best closing level in over a month.
The major averages moved to the downside going into the end of the day but still closed in positive territory. The Nasdaq jumped 264.40 points or 1.5 percent to 17,710.74, the S&P 500 climbed 35.08 points or 0.6 percent to 5,604.14 and the Dow rose 83.60 points or 0.2 percent to 40,752.96.
The early rally on Wall Street came in reaction to upbeat earnings news from software giant Microsoft (MSFT) and Facebook parent Meta Platforms (META).
Shares of Microsoft are soared by 7.6 percent after the company reported better than expected fiscal third quarter results and provided strong full-year guidance.
Meta Platforms also shot up by 4.2 percent after reporting first quarter results that exceeded analyst estimates on both the top and bottom lines.
On the other hand, pharmaceutical giant Eli Lilly (LLY) plummeted by 11.7 percent after reporting better than expected first quarter results but cutting its full-year profit forecast.
Shares of Qualcomm (QCOM) also plunged by 9.0 percent after the chipmaker reported fiscal second quarter results that beat expectations but provided disappointing revenue guidance for the current quarter.
Buying interest waned as the day progressed, however, as traders digested some disappointing U.S. economic data, including a Labor Department report showing first-time claims for U.S. unemployment benefits rose by much more than expected in the week ended April 26th.
The Labor Department said initial jobless claims climbed to 241,000, an increase of 18,000 from the previous week's revised level of 223,000.
Economists had expected jobless claims to inch up to 224,000 from the 222,000 originally reported for the previous week.
The Institute for Supply Management also released a report showing a slight decrease by its reading on U.S. manufacturing activity in the month of April.
The ISM said its manufacturing PMI edged down to 48.7 in April after slipping to 49.0 in March, with a reading below 50 indicating contraction. Economists had expected the index to dip to 48.0.
Sector News
With Microsoft leading the way higher, software showed a substantial move to the upside, driving the Dow Jones U.S. Software Index up by 4.3 percent to its best closing level in over two months.
Significant strength was also visible among networking stocks, as reflected by the 4.2 percent spike by the NYSE Arca Networking Index. The index surged to a one-month closing high.
Oil service stocks also moved sharply higher amid a rebound by the price of crude oil, with the Philadelphia Oil Service Index jumping by 2.6 percent.
Retail stocks also saw notable strength on the day, while pharmaceutical, gold and healthcare stocks came under considerable pressure over the course of the session.
Other Markets
In overseas trading, Japanese and Australian stocks moved to the upside on Thursday, although most major markets in the Asia-Pacific region were closed for Labor Day. Japan's Nikkei 225 Index jumped by 1.1 percent, while Australia's S&P/ASX 200 Index crept up by 0.2 percent.
Meanwhile, with most major European markets closed for May Day, U.K. stocks showed a lack of direction over the course of the trading session. The U.K.'s FTSE 100 Index eventually ended the day just above the unchanged line.
In the bond market, treasuries moved to the downside after ending the previous session roughly flat. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 5.4 basis points to 4.231 percent.
Looking Ahead
While the Labor Department's monthly jobs report is likely to be in focus on Friday, trading may also be impacted by reaction to earnings news from Amazon (AMZN) and Apple (APPL), which are among the companies releasing their quarterly results after the close of today's trading.
Energy giants Chevron (CVX) and Exxon Mobil (XOM) are also among the companies due to report their quarterly results before the start of trading on Friday.
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