US open: Stocks advance on better than expected jobless claims report

(Sharecast News) - Wall Street stocks were in the green early on Thursday thanks to some better-than-expected jobless claims data and corporate results.

As of 1520 BST, the Dow Jones Industrial Average was up 0.64% at 33,947,28, while the S&P 500 was 0.71% firmer at 4,153.84 and the Nasdaq Composite came out the gate 0.94% stronger at 13,988.16.

The Dow opened 216.39 points higher on Thursday, extending gains recorded in what turned out to be a mixed session for major indices on Wednesday as market participants rifled through some strong earnings from several of the nation's largest banks.

Corporate earnings were firmly in focus on Thursday, with Bank of America posting earnings that came in well ahead of expectations on the Street thanks to a solid performance from its trading and investment units and the release of loan-loss reserves.

Pepsi shares were in the green after the drinks maker posted a 7% jump in quarterly sales, topping estimates, while Dow-constituent UnitedHealth also advanced in early trading after its quarterly results topped analysts' expectations and the insurer raised its full-year 2021 guidance.

Traders also digested news that the number of Americans signing up for unemployment benefits fell to 576,000 in the week ended 10 April, the lowest number recorded since the beginning of the Covid-19 pandemic.

According to the Labor Department, applications crashed 193,000 from last week's revised print of 769,000, with the weekly print now remaining sharply below early January's peak of 900,000. Continuing jobless claims came in at 3.73m, broadly flat on the prior week's print of 3.72m.

Elsewhere on the macro front, the Philadelphia Fed Manufacturing current index rose from 44.5 to 50.2 in April to its highest level in nearly 50 years, while the Empire State Manufacturing Index of general business conditions rose to 26.3 in April, up from 17.4 and well above expectations for a print of 18.2 to a multi-year high, well past levels seen prior to the Covid-19 pandemic.

Still on data, production at US factories jumped the most it has in eight months during March, with manufacturing returning to a path of solid growth following weather-related setbacks in February. According to the Federal Reserve, the 2.7% increase in output followed a downwardly revised 3.7% decline in February, while total industrial production, which also includes mining and utility output, rose 1.4% in March after a revised 2.6% decrease in the previous month.

Lastly, the NAHB's housing market index for April showed that sentiment amongst builders rose one point to 83, with builders facing strong demand from potential buyers due to the existing home market continuing to suffer from record low numbers of listings.

Federal Reserve heads Raphael Bostic, Mary Daly and Loretta Mester will all deliver comments throughout the course of the day.