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US Stocks end higher on GDP, Earnings

Capital Market 

The US stock market finished session at record high on Thursday, 29 April 2021, as appetite for risk assets underpinned after strong earnings from blue-chip companies and as data showed the American economy gained steam in the first three months of the year.

At the close of trade, the Dow Jones Industrial Average index advanced 239.98 points, or 0.71%, to 34,060. The S&P 500 index was up 28.29 points, or 0.68%, at 4,211. The tech-heavy Nasdaq Composite Index added 31.52 points, or 0.22%, to 14,083.

The higher close on Wall Street came amid fresh signs of the economy's recovery. The U.

S. economy grew at a 6.4% rate in the first quarter, approaching its pre-pandemic size, and weekly jobless claims fell to their lowest level since the pandemic began last year.

Traders were reacting positively to the latest earnings news from several big-name companies, with Facebook Inc jumping 7.3% as both quarterly revenue and profit came stronger-than-expected, helped by a surge in digital ad spending during the pandemic, along with higher ad prices.

Apple Inc jumped as much as 2.6% before settling lower on concern that the iPhone maker may not sustain growth after a blockbuster quarter as it faces a tightening supply of chips.

ECONOMIC NEWS: US Jobless Claims Slide For Third Straight Week- US first-time claims for unemployment benefits dropped to 553,000 in the week ended April 24th, a decrease of 13,000 from the previous week's revised level of 566,000, according to a report released by the Labor Department on Thursday. Jobless claims fell for the third straight week, once again sliding to their lowest level since hitting 256,000 in the week ended March 14, 2020.

US Economic Growth Accelerates By 6.4% In Q1- US real gross domestic product surged up by 6.4% in the first quarter after jumping by 4.3% in the fourth quarter of 2020, preliminary data released by the Commerce Department on Thursday showed. The faster GDP growth was led by a substantial increase in consumer spending, which was boosted by two rounds of stimulus checks. The report showed consumer spending spiked by 10.7% in the first quarter after climbing by 2.3% in the fourth quarter. The Commerce Department said the GDP growth also reflected increases in non-residential fixed investment, federal government spending, residential fixed investment, and state and local government spending.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Fri, April 30 2021. 09:48 IST