By Sruthi Shankar
(Reuters) – The and the Nasdaq extended a rally on Thursday, as a strong win Facebook Inc (NASDAQ 🙂 added to optimism after the dovish remarks from the Federal Reserve, while investors were waiting for the outcome of the US-China trade negotiations.
Facebook jumped 12.2 percent, on schedule to publish the best day since January 2016, after the quarterly earnings did well on top of analysts' estimates, showing that advertisers still flocked to spend money on the service, even after one series of high-profile feelings of shame.
General Electric (NYSE 🙂 Co rose 14.7 percent after the industrial conglomerate surpassed quarterly sales and cash flow and said it expects industrial sales to increase by a low to average single-digit percentage by 2019.
Equities drew the heart of the Fed's promise on Thursday that it would be patient to continue raising interest rates this year, leading investors' concerns about tightening financial conditions to shrink economic growth.
"There were positive revenues from major companies, but it is mainly due to yesterday's rally," said Scot Lance, managing director at Titus Wealth Management in Larkspur, California.
As revenues in the fourth quarter far exceeded market expectations and the Fed showed a more flexible tone, the S & P 500 is on track to publish the best monthly performance since October 2015.
Of the 210 S & P 500 companies reporting the results for the fourth quarter, 71 percent exceeded the profit estimates, according to Refinitiv data.
Investors are waiting for the completion of high-level talks between the United States and China, aimed at easing a six-month trade war that has damaged the financial markets.
US President Donald Trump was optimistic about the trade talks, but said that no final agreement would be made until he met Chinese President Xi Jinping in the near future.
"There is a lot of wishful thinking about the trade negotiations that lead to a long-term favorable plan for both parties, because despite positive revenues and a strong global economy, the trade problem remains an overhang," said Lance.
At 12:57 pm ET was 58.98 points lower, or 0.24 percent, at 24,955.88, the S & P 500 rose 18.56 points, or 0.69 percent, at 2,699.61 and the increase was 95.79 points, or 1.33 percent, at 7278.87.
The S & P communication services sector achieved 3.68 percent, leading gains in the 11 major S & P sectors.
Charter communication Inc (NASDAQ 🙂 jumped 14.6 percent after the topper's quarterly earnings, as the cable operator attracted more customers for its internet services.
The Dow was pulled down by losses in DowDuPont Inc, which dropped 8.5 percent after the chemist maker's earnings were below expectations. The sector of S & P materials fell 1.4 percent.
Microsoft Corp. (NASDAQ 🙂 decreased by 1.4 percent, as cloud computing sales in Azure grew at a slower pace than a year earlier, although quarterly earnings and forecasts were at the top of Wall Street estimates.
Intel Corp (NASDAQ 🙂 lost 2.2 percent after chipmaker named interim director Robert Swan to the role on a permanent basis.
Promotion problems were in the minority than the tarpaulins for a 2.47-on-1 ratio on the NYSE and a 1.73-on-1 ratio on the Nasdaq.
The S & P index recorded 23 new 52-week highs and no new lows, while the Nasdaq took 38 new highlights and 18 new lows.