Equities Despite GDP Contraction - InvestingChannel

Equities Despite GDP Contraction

U.S. equities rose on Thursday even after the latest GDP showed a second-straight contraction as investors bet the economic downturn would soon cause the Federal Reserve to end its aggressive hiking campaign.

The Dow Jones Industrials came out of their hole and leaped 224.59 points to pause for midday at 32,422.18.

The S&P 500 restored 27.72 points to 4,051.33

The NASDAQ regained 56.46 points to 12,088.89.

All of the major averages cut steeper losses from earlier in the session and are on pace for a winning week as well as their best month of 2022.

The moves came after the Bureau of Economic Analysis reported U.S. economic growth fell 0.9% in the second quarter. The Dow Jones estimate was for a gain of 0.3%. First-quarter GDP declined by 1.6%.

Investors also continued to monitor companies’ second-quarter results Thursday. Shares of Meta Platforms dipped 5.9% on the back of disappointing quarterly numbers.

Shares of Comcast slid more than 9% after reporting it failed to add broadband subscribers for first time ever.

Charter Communications fell 7%. The communication services sector was down by 2%, after posting its best daily performance since April 2020 on Wednesday.

Stanley Black & Decker shares tumbled about 15% after the manufacturing company missed earnings and revenue estimates and cut its earnings guidance.

Nearly 49% of S&P 500 companies have reported earnings through Thursday’s open. Of those companies 71.5% have beaten estimates.

Investors are looking ahead to results from Apple, Amazon, Intel and Roku slated for after the bell.

Treasury prices rose, lowering yields to 2.71%, from Wednesday’s 2.79%. Treasury prices and yields move in opposite directions.

Oil prices gained 81 cents to $98.07 U.S. a barrel.

Gold prices gathered $31.80 to $1,750.90 U.S. an ounce.

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