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Wall St gains with upbeat earnings and forecasts

EconomyJul 29, 2021 07:26PM ET
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© Reuters. FILE PHOTO: A Wall Street sign is pictured outside the New York Stock Exchange in New York, October 28, 2013. REUTERS/Carlo Allegri/File Photo

By Caroline Valetkevitch

NEW YORK (Reuters) - U.S. stocks ended higher on Thursday, boosted by robust U.S. earnings and forecasts, while data showed the economy recovered to pre-pandemic levels in the second quarter.

The U.S. economy grew solidly in the second quarter, putting the level of gross domestic product above its pre-pandemic peak, but the pace of GDP growth was slower than economists had expected.

Among the latest upbeat earnings news, shares of Ford Motor (NYSE:F) Co jumped 3.8% as the company lifted its profit forecast for the year, while KFC owner Yum Brands Inc rose 6.3% after it beat expectations for quarterly sales.

The day's lower than expected economic data may have calmed a bit of investor angst that the Federal Reserve's "easy money policy" may be going away soon, said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia. Investors also saw "some pretty good earnings today," he said.

Stocks got a boost on Wednesday after the Fed said it was not yet time to start withdrawing its massive monetary stimulus.

Economically sensitive groups including financials, materials and energy led S&P sector gains on Thursday.

The Dow Jones Industrial Average rose 153.6 points, or 0.44%, to 35,084.53, the S&P 500 gained 18.51 points, or 0.42%, to 4,419.15 and the Nasdaq Composite added 15.68 points, or 0.11%, to 14,778.26.

The Dow and S&P 500 hit intraday record highs early in the session.

The S&P 500 real estate sector hit a record intraday high as well, but ended down 0.2%.

On the down side, Facebook Inc (NASDAQ:FB) shares fell 4% as the company warned revenue growth would "decelerate significantly" following Apple Inc (NASDAQ:AAPL)'s recent update to its iOS operating system that would impact the social media giant's ability to target ads.

Graphic: U.S. stock market's rising valuation - https://fingfx.thomsonreuters.com/gfx/mkt/gdpzyrnwjvw/Pasted%20image%201627570968776.png

Results were in from about half of the S&P 500 companies as of Thursday morning. Nearly 91% of the reports have beaten profit estimates, and second-quarter earnings now are expected to have jumped 87.2% from a year ago, according to Refinitiv data.

After the bell, shares of Amazon.com Inc (NASDAQ:AMZN) were down more than 5% after the company reported results and forecast third-quarter sales below Wall Street expectations.

During the regular session, Tesla (NASDAQ:TSLA) Inc jumped 4.7% and was the biggest boost to the S&P 500, followed by Apple, which rose after Wednesday's declines.

Also, shares of Robinhood Markets Inc (NASDAQ:HOOD), the popular trading app used by many investors to participate in this year's "meme" stock trading frenzy, ended down 8.4% on their first day of trading.

With rising inflation and concerns that higher prices would not be as transient as expected, focus on Friday will be on the June reading of the personal consumption expenditures price index.

Volume on U.S. exchanges was 9.13 billion shares, compared with the average of about 9.86 billion for the full session over the last 20 trading days.

Advancing issues outnumbered declining ones on the NYSE by a 2.34-to-1 ratio; on Nasdaq, a 1.22-to-1 ratio favored advancers.

The S&P 500 posted 76 new 52-week highs and 1 new low; the Nasdaq Composite recorded 105 new highs and 49 new lows.

Wall St gains with upbeat earnings and forecasts
 

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Comments (11)
Izzy Hayat
Izzy Hayat Jul 29, 2021 9:11PM ET
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this didn't age well lol
Dave Jones
Dave Jones Jul 29, 2021 2:40PM ET
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Excellent news! Pay off debt. Raise interest rates. Stop QE. And pay your workers a living wage.
Franco Dominguez
Franco Dominguez Jul 29, 2021 1:58PM ET
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pace? dissapointment gdp, we could start talk of stagflation
Chatt career
Chatt career Jul 29, 2021 1:27PM ET
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S&p and Dow is not the economy as title says. La la land. 🤣🤣🤣🤣🤣🤣🤣🤣🤣
Chandrakant Shah
Chandrakant Shah Jul 29, 2021 1:15PM ET
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Fed will not stop printing and pumping till Dow hits 50k, S&P 5k, and NASDAQ 25k... Enjoy the ride folks!!!
Mitchel Pioneer
Mitchel Pioneer Jul 29, 2021 12:46PM ET
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Where's the plunge at 10AM?  Where's the loss of "gains" at 11AM?  Will we see the "market" tank "in late trade?"  Welcome to the greatest financial fraud in history, and biggest investment joke in the world, as it financially defiles America in broad daylight.
soho electronics
soho electronics Jul 29, 2021 12:18PM ET
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so unemployment high, fed not tapering cause economy not good, housing sales low, chip and inflation issues, rising freight costs but markets keep going up?? glad I did not waste my time in school to learn this ********, cause nothing making sense no more!!!
Franco Dominguez
Franco Dominguez Jul 29, 2021 12:18PM ET
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you could resume in stagflation and not waste a lot of words, your business skool must teach you
perplexed76 .
perplexed76 . Jul 29, 2021 12:18PM ET
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gamblers go wild
S S Shet
pingo_0070 Jul 29, 2021 11:59AM ET
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what nonsense ...one news says GDP growth slowed down, that's why stocks gained , bcoz now FED won't taper fast ..another news says economy is fast recovering hence stocks are rallying ..which one to follow .. or both to follow .. crazy market and crazy analysts ..
Iwan kadarusman
Iwan kadarusman Jul 29, 2021 11:59AM ET
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yawn ... manipulation data
Sherman Shields
Sherman Shields Jul 29, 2021 11:59AM ET
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Estimations cryptic
Stan Smith
Stan Smith Jul 29, 2021 11:56AM ET
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The Moment Wall Street Has Been Waiting For: Retail Is All In
Ronald Warren
Ronald Warren Jul 29, 2021 11:56AM ET
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True words could not have been spoken. When the big boys take all their profits, will they hold and buy back in at the bottom?
Ronald Warren
Ronald Warren Jul 29, 2021 11:56AM ET
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"Truer"
Stan Smith
Stan Smith Jul 29, 2021 11:56AM ET
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Ronald Warren  The con requires euphoric confidence that stocks only go up forever, and every retail trader is confident in their ability to ride the wave to riches. We're finally at that summit of euphoric confidence, where faith in the Federal Reserve is literally a religious experience.
christos rousakis
christos rousakis Jul 29, 2021 9:46AM ET
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lets go circus ,buy captain american apiderman and all the circus in america ha ha ha
 
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