US: Stocks gain on earnings despite mixed economic data

[NEW YORK] Wall Street stocks resumed their upward climb early Thursday (Oct 28) following a stream of mostly strong earnings from Merck, Caterpillar and others as investors shrugged off a lacklustre US growth report.

Shares of Ford jumped 12.6 per cent while Merck won 4.2 per cent following the latest round of earnings in a week jammed with results. Apple and Amazon report later on Thursday.

Those upbeat reports overshadowed data showing the US economy grew by just 2 per cent in the third quarter, down from the 6.7 per cent annual rate in the prior quarter as resurgent Covid-19 infections slowed consumer activity.

But a note from Schwab described the US growth data as "backward-looking", adding that it was offset by "more timely" jobless claims data that improved.

About 20 minutes into trading, the Dow Jones Industrial Average was up 0.5 per cent at 35,670.24.

The broad-based S&P 500 gained 0.6 per cent to 4,580.02, while the tech-rich Nasdaq Composite Index also climbed 0.6 per cent to 15,331.33.

Markets are monitoring ongoing talks in Washington, where congressional Democrats are struggling to reach an agreement on US President Joe Biden's infrastructure and social spending legislation.

AFP