The major averages had a mixed open and have remained that way throughout the morning. The Nasdaq has been the leader as the tech heavy index is being helped by Facebook (FB) shares, which are jumping following the social network operator's better than expected earnings report. The Dow has pared its losses but has not yet joined the Nasdaq and S&P in positive ground.
ECONOMIC EVENTS: In the U.S., initial jobless claims surged 53,000 to 253,000 in the week ended January 26. The Employment Cost Index rose 0.7% in Q4, as analysts expected. The Chicago PMI dropped 7.1 points to 56.7 in January. New home sales jumped 16.9% to a 657,000 unit rate in November, which was much better than expected.
In China, the country's official manufacturing PMI was slightly better at 49.5, up from 49.4 in December. The official government non-manufacturing PMI reading also edged higher, rising to 54.7 from 53.8 in December.
COMPANY NEWS: Shares of Facebook (FB) are up 12% after the social media giant reported better than expected profit and revenue on higher ad sales and product improvements. Following the announcement, several Wall Street analysts raised their price targets on the shares as the negative press cycle did not seem to visibly impact the quarterly results.
General Electric (GE) gained 15% after the company, which has also faced a number of recent headwinds, reported earnings that were below consensus but revenue that was better than expected. GE also reported that it has reached agreement in principle with the U.S. Department of Justice to settle the investigation of WMC, its subprime mortgage unit. GE said it agreed to pay a civil penalty of $1.5B, consistent with the prior reserve for this matter.
Shares of Tesla (TSLA) are fractionally lower after the company reported mixed quarterly results and the surprise departure of its chief financial officer.
Microsoft (MSFT) reported sales and earnings that were largely in-line with consensus forecasts as component shortages led to a weaker Windows OEM business, offsetting strength in its cloud and Commercial Office businesses. Shares of the tech giant are down 1.5% following its year-end report.
Intel (INTC) shares are slipping 2% after the company named its interim chief executive officer, Bob Swan, to the role permanently, ending a seven-month search for a new CEO.
MAJOR MOVERS: Among the noteworthy gainers was Avon Products (AVP), which rose 22% after it announced plans to cut 10% of its global headcount and take a 15% inventory reduction. Also higher were ServiceNow (NOW) and Charter (CHTR), which gained a respective 14% and 15% after reporting quarterly results.
Among the notable losers was H&R Block (HRB), which slid 10% after Goldman Sachs analyst George Tong downgraded the stock to Sell from Neutral and cut his price target for the shares to $22 from $27, saing he sees "structural challenges" to the company's assisted business following tax reform in the U.S. Also lower were Cimpress (CMPR) and DowDuPont (DWDP), which fell 26% and 8.5%, respectively, after reporting quarterly results.
INDEXES: Near midday, the Dow was down 53.15, or 0.21%, to 24,961.71, the Nasdaq was up 96.80, or 1.35%, to 7,279.88, and the S&P 500 was up 19.18, or 0.72%, to 2,700.23.
Ticker changed to META
+18.64 (+12.39%)
General Electric
+1.29 (+14.18%)
Tesla
-1.81 (-0.59%)
Microsoft
-1.99 (-1.87%)
Intel
-1.09 (-2.29%)
Avon Products
+0.42 (+22.22%)
ServiceNow
+25.88 (+13.35%)
Charter
+43.13 (+14.89%)
H&R Block
-2.475 (-9.70%)
Cimpress
-30.16 (-25.99%)
DowDuPont
-5.07 (-8.54%)