Stock markets rally on boost from technology
Stocks rallied Thursday, enjoying a boost from the technology sector during the heart of the earnings season.
The Dow Jones Industrial Average gained 238.51 points, or 0.99%, to 24,322.34. The S&P 500 rose 27.54 points to 2,666.94. The Nasdaq Composite was up 114.94 points, or 1.64%, at 7,118.68.
Amazon rallied nearly 7% in after-hours trading, putting the stock above its all-time intraday high of $1,617. The company said that it will raise the annual price of Prime subscriptions to $119, a 20% increase. The e-commerce giant, which reported first-quarter earnings that more than doubled, currently charges U.S. customers $99 for an annual subscription.
Facebook surged almost 10% a day after Chief Operating Officer Sheryl Sandberg said on a conference call with analysts that the company wasn't seeing a "meaningful trend" to suggest concern from advertisers after the data breach scandal.
The technology sector led stocks higher with a 2.3% gain on the day. Energy and consumer discretionary shares were also among the top-performing sectors in the S&P.
Shares of Chipotle Mexican Grill mounted a record rally, a day after posting earnings that beat Wall Street expectations. Though still struggling to win back customers over food safety concerns over the past two years, the company raised prices on its menu, helping to offset fewer transactions. The stock jumped 24%.
Companies due to publish earnings after the closing bell included Amazon and Starbucks.
The e-commerce giant was expected by analysts to report a decline in earnings as it invests to expand its offerings and global reach.
Starbucks is dealing with the PR ramifications of the arrest of two African-American men at a Philadelphia shop.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| FB | NO DATA AVAILABLE | - | - | - |
| CMG | CHIPOTLE MEXICAN GRILL INC. | 59.45 | +0.57 | +0.97% |
Concerns about rising interest rates receded as the 10-year Treasury yield dipped back below 3%. It eased for the first time in seven sessions after rising to 3.035%, the highest level in more than four years.
On Wednesday, the Dow climbed on strong results from Boeing.
The world’s largest airplane maker easily surpassed analysts’ expectations on earnings and raised its full-year earnings forecast by 50 cents.