U.S. Stocks rose Thursday with the Dow Jones Industrial Average headed for a 14-day advance, as traders absorbed a strong GDP number and Meta earnings results.
The Dow traded 42 points higher, 0.1%. The S&P 500 climbed 0.7%, and the Nasdaq Composite popped 1.3%. A 14-day streak for the 30-stock index would tie its longest positive streak on record going back to June 1897. The Dow was created just a little more than one year prior, in May 1896.
Gross domestic product showed a rise of 2.4% in the second quarter, which was better than the 2% increase expected by economists polled by Dow Jones. The report also suggested price pressures are easing, with the personal consumption expenditures price index rising 2.6% in the second quarter. That’s lower than the 3.2% increase expected by economists, and the 4.1% rise in the prior quarter.
Meta Platforms shares popped more than 8% on better-than-expected results and strong guidance. The company’s numbers were boosted by a rebound in ad revenue. McDonald’s shares rose about 2% after an earnings beat driven in part by a rebound in China sales. Meanwhile, Chipotle Mexican Grill dropped about 9% as sales fell short of estimates.
Earnings results have been stronger-than expected. Of the companies that have reported thus far, 81% have beaten analyst expectations, according to FactSet data.
The GDP data and earnings are the latest signals the U.S. economy is more resilient than expected and could dodge a recession, as inflation shows continued signs of easing. On Wednesday, investors digested remarks from Chair Jerome Powell hinting the central bank could also hold rates steady at these levels, and suggested that the Federal Open Market Committee will remain data-dependent. The central bank meets again in September after a batch of new inflation and employment data.
“Those very high rates that scared me and the market earlier on in the year don’t seem to be having as much of a negative effect as I had feared,” Wharton School’s Jeremy Siegel told CNBC’s “Squawk Box” Thursday. “And that, combined with the fact that Powell now is saying I’m going to look at both sides of the equation, I think is very positive for the markets.”
Stocks continued their bullish momentum this week, with the Dow on Wednesday rising for a 13th straight session and notching its longest win streak since 1987. It could make history books Thursday if it closes higher. A 14-day streak for the 30-stock index would tie its longest positive streak on record going back to June 1897. The Dow was created just a little more than one year prior, in May 1896.
