Stocks opened in positive territory on the heels of solid earnings reports, yesterday’s market momentum, and the better than expected ADP employment change report. The Dow scored triple digit gains at the open and the Nasdaq moved out of correction territory with its gains. Despite the market having its biggest two-day gain since early in 2016 to close out the month, October still represented the worst month for stocks since 2008. Stocks were not the only asset class pulling back in October, as benchmark U.S. light crude ended Wednesday's session down 1.3% to close out its worst monthly loss since July 2016.
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) rose about 4% after the social media giant slightly missed revenue expectations in Q3 and slightly beat on operating income.
General Motors (GM) shares gained 9% 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 3% 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 14% and 7% after reporting quarterly results.
Among the notable losers was Maxar Technologies (MAXR), which dropped 45% after it reported downbeat quarterly results and provided fiscal 2018 guidance. Also lower after reporting quarterly results were The Container Store (TCS), which fell 41%.
INDEXES: The Dow gained 241.12, or 0.97%, to 25,115.76, the Nasdaq rose 144.25, or 2.01%, to 7,305.90, and the S&P 500 advanced 29.11, or 1.09%, to 2,711.74.
Ticker changed to META
+5.58 (+3.81%)
General Motors
+3.05 (+9.10%)
Arconic
+0.64 (+3.25%)
Apollo Global
-0.5 (-1.67%)
T-Mobile
+4.52 (+7.06%)
Yum China
+4.425 (+13.96%)
Maxar Technologies
-12.06 (-44.57%)
Container Store
-4.11 (-41.06%)
Electronic Arts
-3.53 (-3.73%)