Wall Street Surges as Investors Cheer 3Q Earnings
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Stocks rebounded Thursday as strong earnings from Caterpillar (NYSE:CAT) and 3M (NYSE:MMM) lifted the Dow higher.
Today’s Markets
The Dow Jones Industrial Average gained 216 points, or 1.3%, to 16,677. The S&P 500 rose 23.7 points, or 1.2%, to 1,950. The Nasdaq jumped 69.9 points higher, or 1.6%, to 4,452.
Volatility has gripped Wall Street this month, fueled by concerns over economic growth in China, Europe and the U.S. The market calmed down in recent sessions, although the Dow lost 153 points Wednesday after a shooting near the parliament building in Ottawa.
Better-than-expected earnings reports from Caterpillar, 3M and other bellwethers fueled Wall Street’s sentiment Thursday. Caterpillar shares jumped 5% after it beat third-quarter expectations and raised its outlook. The company said cost controls have offset slow revenue growth.
3M’s bottom line topped consensus estimates as well, sending shares 5% higher.
Shares of Chevron (NYSE:CVX) and Visa (NYSE:V) climbed 2% and 1.5%, respectively, contributing to the Dow’s strong showing.
The market pared some if its gains after reports surfaced of a possible Ebola case in New York City. A doctor who treated patients infected with the virus in West Africa was rushed to a hospital.
The U.S. Labor Department said the number of Americans filing for unemployment benefits rose 17,000 to 283,000 last week. A week earlier, total jobless claims dropped to a 14-year low.
Also on the corporate front, Sears Holdings (NASDAQ:SHLD) is prepared to close another 100 Sears and Kmart stores by January, according to Seeking Alpha. The report, which cited liquidation notices sent to local media, sparked a 5% rally in the stock.
General Motors (NYSE:GM) ticked 1.2% lower despite surpassing expectations for third-quarter earnings. Higher transaction prices in North America contributed to stronger results in the region, offsetting a loss in Europe.
In commodities, West Texas Intermediate crude oil jumped $1.57 to $82.09 a barrel. The upswing follows reports that Saudi Arabia cut oil supplies last month. Wholesale New York Harbor gasoline was up more than four cents at $2.20 a gallon.