(Reuters) – The New York Stock Exchange opened higher on Thursday as strong corporate earnings and a stronger-than-expected rise in U.S. jobless claims pushed concerns over the course of interest rates to the back burner of interest.
In early trading, the Dow Jones index gained 251.13 points, or 0.74% to 34,200.14 points and the broader Standard & Poor’s 500 rose 0.91% to 4,155.28 points.
The Nasdaq Composite takes 1.31%, or 156.58 points, to 12,067.10 points.
As investors try to digest the latest statements from central bankers on rates, which have sparked various interpretations, the only indicator expected during the day in the United States showed Thursday that jobless claims had increased more than expected during the week to February 4, at 196,000, while economists expected an average of 190,000.
These data also follow the publication last week of job creation figures in the United States for the month of January, well above expectations, which made the markets waver.
“There are so many companies laying off and it will end up weakening the labor market. For the Fed, it’s too early, but if this trend continues and inflation continues to head down, then the Fed’s rhetoric will change and a pause is not that far away,” said Peter Cardillo, chief economist at Spartan Capital Securities.
Many job cuts have been announced in recent weeks in the United States, particularly in the technology sector.
Concerns persist, however, about the future path of interest rates, especially after Fed Chairman Jerome Powell said on Tuesday that it would take time to bring inflation back towards the 2% target, while still claiming that disinflation had begun.
In values, this Thursday’s session is mainly marked by business news, with a new burst of financial publications on the program.
Walt Disney gained 3.9% after announcing the elimination of some 7,000 jobs on Wednesday, and the casino groups Wynn Resorts and MGM gained 5.9% and 8% respectively after their good fourth quarter results.
Pepsi, which on Thursday reported better-than-expected fourth-quarter sales and profit, rose 2.4% at the opening, and the Hilton hotel chain took 2.1% after reporting a rise in its quarterly profit, helped by strong travel demand and high room rates.
Kellogg’s takes 1.6%, also driven by its quarterly results.
On the other hand, Mattel, the maker of Barbie dolls, fell 9.8% in reaction to a less optimistic than expected profit forecast for 2023.
Of more than half of S&P 500 companies that have so far released their fourth-quarter results, 69% beat market estimates, according to IBES data from Refinitiv.
(Written by Diana Mandiá, edited by Blandine Hénault)
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