The major domestic equity indexes rebounded on Thursday with the Dow Jones Industrial Average chalking up its largest percentage gain in over four months, as positive earnings and waning trade concerns buoyed investor confidence.
Walmart rose 9.3 percent after the world’s largest retailer exceeded earnings estimates and posted its best same-store sales growth in a decade.
Easing trade tensions gave relief to tariff-vulnerable industrials, which led the Dow ’s advance. Boeing and Caterpillar ended the session up 4.3 percent and 3.2 percent, respectively. The S&P 500 industrial sector gained 1.2 percent.
Escalating tariff rhetoric cooled down on news that Beijing will send a delegation to Washington to help resolve the growing trade conflict between the world’s two largest economies.
All 11 major sectors of the S&P 500 ended the session higher, with telecom and consumer staples posting the largest percentage gains.
Second-quarter reporting season is winding down. With 463 of S&P 500 companies having posted earnings, 79.3 percent have exceeded analyst estimates, according to Thomson Reuters I/B/E/S.
Cisco rose 3.0 percent after exceeding Street revenue and profit consensus estimates.
Symantec ended a five-day slide, advancing 4.6 percent after hedge fund Starboard Value LP bought a 5.8 percent stake in the company.
J.C. Penney posted an all-time closing low, falling 27 percent after releasing disappointing results and forecasting a full-year loss greater than the Street had been expecting.
Approximately 6.39 billion shares changed hands on the major domestic equity exchanges, as compared to the 6.53 billion-share average over the past 20 trading days.
New Unemployment Claims Show Little Change
For the week ending August 11, the number of initial unemployment claims was 212,000 claims, a decrease of 2,000 claims from the previous week’s revised level, which was revised up by 1,000 claims from 213,000 to 214,000 claims.
The 4-week moving average was 215,500 claims, an increase of 1,000 claims from the previous week’s revised average. The previous week’s average was revised upward by 250 claims from 214,250 to 214,500 claims.
The advance seasonally adjusted insured unemployment rate was 1.2 percent for the week ending August 4, unchanged from the previous week’s unrevised rate.
The advance number for seasonally adjusted insured unemployment during the week ending August 4 was 1,721,000, a decrease of 39,000 from the previous week’s revised level.
The previous week’s level was revised up 5,000 from 1,755,000 to 1,760,000. The four-week moving average was 1,738,500, a decrease of 8,000 from the previous week’s revised average. The previous week’s average was revised up by 1,250 from 1,745,250 to 1,746,500.