Day Traders Diary
The major averages rose to record levels on Thursday after blowout earnings results from two of the biggest tech companies in the world: Apple and Facebook. The Dow Jones Industrial Average ended the day up about 240 points. The S&P 500 advanced 0.7% to finish the day at a new closing high.
The tech-heavy Nasdaq Composite, which began the day up 1%, underperformed with a gain of just over 0.2% or 31 points.
Apple said that sales jumped 54% during the quarter, with each product category seeing double-digit growth. The company also said it would increase its dividend by 7%, and authorized $90 billion in share buybacks. Apple shares were up 0.55%.
Thursday marks President Joe Biden's 100th day in office. On Wednesday evening, he made his first address to a joint session of Congress where he pushed his so-far popular agenda, which includes a $2 trillion infrastructure plan as well as a freshly unveiled, $1.8 trillion plan for families, children and students.
Thursday is also the busiest day of the quarterly earnings season, with roughly 11% of the S&P 500 slated to provide quarterly updates.
McDonald's published its results before the opening bell and told investors that its sales have finally topped pre-pandemic levels. The Dow component also raised its outlook for systemwide sales growth. Yet the shares were last little changed.
Caterpillar, which also reported on Thursday, lost 2.6% while Merck dropped 5% following disappointing results. Amazon, Gilead Sciences, Twitter, U.S. Steel and Western Digital will post results after the market closes.
Facebook's revenue jumped 48%, driven by higher-priced ads, sending its stock up as much as 7.3% and to a record high. Qualcomm shares added 4% after reporting a 52% jump in revenue.
Economic data released Thursday gave investors an update on the progress of the economic recovery.
All comments contained herein are for informational purposes only, and should not be considered as a solicitation to buy or sell any security. The firm does not guarantee the accuracy or completeness of the information or make any warranties regarding results from it's usage.