US stocks open at record highs on strong earnings

US stocks

New York, July 28: US stocks opened higher on Thursday, with major indices hitting record highs, bolstered by upbeat earnings.

Shares of Facebook soared over five per cent early on Thursday, after the social media giant posted better-than-expected quarterly results, Xinhua news agency reported.

Facebook reported second-quarter diluted earnings per share of $1.32 on revenue of $9.32 billion. The company also posted its daily active users of 1.32 billion on average for June 2017, an increase of 17 per cent year-on-year.

Twitter and Comcast also announced quarterly earnings that topped Wall Street estimates.

This earnings season has been strong so far and pushed the major indices that have notched record highs recently.

Latest data from Thomson Reuters showed that the S&P 500 companies’ blended earnings in the second quarter of 2017 are expected to rise 9.9 per cent year-on-year, while the revenues are forecast to increase 4.7 per cent.

On the economic front, in the week ending July 22, the advance figure for seasonally adjusted initial claims was 244,000, an increase of 10,000 from the previous week’s revised level, the US Labor Department said.

Meanwhile, Wall Street still digested a monetary policy announcement from the Federal Reserve.

The Fed on Wednesday left its benchmark interest rates unchanged as expected amid soft inflation. But the central bank signaled that it would begin shrinking its balance sheet “relatively soon.”

Market analysts had said the Fed might start the balance sheet reduction as early as September.

Shortly after Thursday’s opening bell, the Dow Jones Industrial Average gained 63.76 points, or 0.29 per cent, to 21,774.77. The S&P 500 rose 2.41 points, or 0.10 per cent, to 2,480.24. The Nasdaq Composite Index was up 27.55 points, or 0.43 per cent, to 6,450.30.


Related Posts