US: Stocks lifted by tech earnings, economic data

[NEW YORK] Wall Street stocks rose early on Thursday following blowout earnings from Apple and Facebook and economic reports showing strong US growth and lower jobless claims.

The two Silicon Valley giants reported profits that essentially doubled, with Apple earning more than US$23.6 billion and Facebook some US$9.5 billion in the first three months of the year.

The results - which extend a trend of outperformance by tech giants in the pandemic - lifted Apple shares by 0.8 per cent and Facebook by 6.0 per cent About 10 minutes into trading, the tech-rich Nasdaq Composite Index led major indices, winning 0.9 per cent to 14,171.12.

The Dow Jones Industrial Average climbed 0.4 per cent to 33,960.78, while the broad-based S&P 500 advanced 0.7 per cent to 4,213.46.

Also cheering markets was government data showing gross domestic produce grew 6.4 per cent in the first quarter of this year, the first of three estimates of growth.

Consumers began to spend more freely in the first quarter, led by purchases of autos, homes and big-ticket consumer goods, as well as on services like hotels and restaurants.

However, the report also showed jumps in key inflation benchmarks, a worry for the market.

Meanwhile, US jobless claims fell for the third straight week, bolstering the case that the world's largest economy is seeing a sustained job recovery.

Investors were also digesting President Joe Biden's address to Congress Wednesday night during which he called for trillions of dollars to rebuild the post-pandemic US middle class and strengthen infrastructure.

AFP