Stocks opened in positive territory thanks to solid earnings reports, better than expected jobs data from ADP, rallies in overseas markets, and a continuation of yesterday’s momentum. The averages continued to tack on gains throughout the morning and in the process pulled the Nasdaq out of correction territory. The two-day rally capping October, assuming today's early move holds, will end to an otherwise ugly month for stocks.
ECONOMIC EVENTS: In the U.S., ADP reported private payrolls increased a solid 227,000 in October following a revised 218,000 September surge. The employment cost index rose 0.8% in Q3, as analysts forecast. The Chicago PMI fell 2.0 points to 58.4 in October, which was weaker than expected. In China, the National Bureau of Statistics' "official" PMIs missed expectations, with the manufacturing PMI coming in at 50.2 versus an expected 50.6 and non-manufacturing reading 53.9 versus an expected 54.6.
COMPANY NEWS: Shares of Facebook (FB) are up 3% near noon after the social media giant slightly missed revenue expectations in Q3 and slightly beat on operating income. JPMorgan analyst Doug Anmuth added Facebook to his firm's Equity Analyst Focus List as a value pick and reiterated an Overweight rating on the shares following last night's Q3 results, stating that while he recognizes concerns will remain around engagement and shifting social behavior, he views the company's 2B-plus user base "as stickier than many believe."
General Motors (GM) shares are up nearly 8% after the automaker posted better than expected third quarter earnings and revenue and said it expects FY18 earnings per share to come in at the top of the company's previously guided range.
MAJOR MOVERS: Among the noteworthy gainers was Arconic (ARNC), which rose 5% after Reuters reported yesterday that Apollo Global (APO) is in advanced talks to acquire the company for over $11B. Also higher were Yum China (YUMC) and T-Mobile (TMUS), which gained a respective 15% and 7% after reporting quarterly results.
Among the notable losers was Maxar Technologies (MAXR), which dropped 42% after it reported downbeat quarterly results and provided fiscal 2018 guidance. Also lower after reporting quarterly results were The Container Store (TCS) and Electronic Arts (EA), which fell 35% and 3.5%, respectively.
INDEXES: Near midday, the Dow was up 263.19, or 1.06%, to 25,137.83, the Nasdaq was up 129.06, or 1.8%, to 7,290.71, and the S&P 500 was up 30.84, or 1.15%, to 2,713.47.
Ticker changed to META
+3.4 (+2.32%)
General Motors
+2.4 (+7.16%)
Arconic
+0.95 (+4.82%)
Apollo Global
-0.66 (-2.21%)
T-Mobile
+4.48 (+7.00%)
Yum China
+4.47 (+14.11%)
Maxar Technologies
-11.24 (-41.54%)
Container Store
-3.545 (-35.41%)
Electronic Arts
-3.5 (-3.70%)