Markets on tenterhooks as banking turmoil and economic data take center stage
Stocks ticked up Thursday, boosted by a slew of robust earnings reports even as economic data indicated that the US economy is slowing.
Meta Platforms’ latest earnings report that showed the company saw sales growth for the first time in nearly a year.
Shares of the tech behemoth swelled 14.4% after it reported after the close Wednesday that it grew revenue by 3% during the first quarter after three consecutive quarters of declines. User growth was also strong compared to prior quarters.
Shares of Barclays and Deutsche Bank added 4.3% and about 3%, respectively, after the banks posted strong profit growths despite the banking tumult last month.
While fears about the financial sector’s stability have mostly receded in Europe, concerns have ramped up in the United States.
First Republic Bank stock tumbled 0.4% on Thursday, continuing its slide after the bank said its total deposits fell 41% in the first quarter and questions swirl about its survival.
Meanwhile, the latest weekly jobless claims fell to 230,000, after gains in recent weeks suggested the US labor market could finally be softening.
First-quarter GDP data released Friday morning showed the US economy slowed to an annualized and seasonally adjusted rate of 1.1%, as rising interest rates and high inflation weighed on business investment. That’s below economists’ expectations of 2% and could put pressure on the Federal Reserve to hit pause on its rate hikes.
The latest pending home sales and mortgage rates are due later this morning.
Investors are also awaiting earnings from Amazon and Snap after the close.
The Dow rose 88 points, or 0.3%.
The S&P 500 gained 0.6%.
The Nasdaq Composite advanced about 1%.
Source: CNN
