Earnings Spread Good Cheer
Major U.S. indexes rallied back into long-term resistance areas on Thursday on the strength of positive earnings reports as they shrugged off a poor Markit PMI reading.
Nearly ten percent of the S&P 500 companies reported their earnings on Thursday, making it the busiest day of the reporting season. The homebuilding sector rallied after PulteGroup (NYSE:PHM) reported earnings of 45 cents per share on $1.58 billion in revenue, beating estimated earnings per share of 36 cents on revenue of $1.46 billion. The decisive earnings beat gave a boost to other homebuilding stocks, as PHM shares soared 7.01 percent to $17.85. The SPDR S&P Homebuilders ETF (NYSE:XHB) jumped 2.29 percent to $31.25.
The Dow Jones Industrial Average (NYSEARCA:DIA) picked up 95 points to finish Thursday’s trading session at 15,509 for a 0.62 percent advance. The S&P 500 (NYSEARCA:SPY) rose 0.33 percent to close at 1,752. The Nasdaq 100 (NASDAQ:QQQ) advanced 0.49 percent to finish at 3,362. The Russell 2000 (NYSEARCA:IWM) surged 0.71 percent to end the day at 1,118.
In other major markets, oil (NYSEARCA:USO) advanced 0.11 percent to close at $34.99. On London’s ICE Futures Europe Exchange, December futures for Brent crude oil fell 80 cents (0.74 percent) to $107.00/bbl. (NYSEARCA:BNO). December gold futures rose $12.60 (0.94 percent) to $1,346.60 per ounce (NYSEARCA:GLD). Transports were flying safely above the drones on Thursday, with the Dow Jones Transportation Average (NYSEARCA:IYT) climbing 1.06 percent.