NASDAQ Composite Leads Major U.S. Stock Indexes Higher

Earnings were at the forefront on Thursday as investors drove stocks sharply higher. Additionally, the benchmark U.S. Treasury yield slipped below the psychological 3 percent level amid a fresh wave of buying. The U.S. Dollar also posted a strong gain in response to a dovish European Central Bank monetary policy statement.

U.S. Equity Markets

The major U.S. stock indexes rose sharply on Thursday with the NASDAQ Composite leading the way, boosted by strong quarterly results from a couple of technology giants.

Contributing the most to the rise in the NASDAQ Composite were earnings from Facebook and Advanced Micro Devices that topped expectations.

Facebook shares jumped 9.1 percent after the social media company posted better-than-expected earnings and revenue for the first quarter. Advanced Micro Devices rose about 14 percent after it posted better-than-expected earnings.

U.S. Economic Data

U.S. Durable Goods rose 2.6 percent in March, far more than the expected 1.6 percent gain. Weekly jobless claims totaled 209,000 the week-ending April 20, well below a forecast of 230,000.

The Goods Trade Balance came in better-than-expected at -68.0 Billion and Preliminary Wholesale Inventories rose 0.5% lower than the 0.6% forecast.

Gold

Gold futures hit a five-week low on Thursday and is currently in a position to post a 1 percent loss for the week, pressured by a strong U.S. Dollar, high U.S. Treasury yields, expectations of higher inflation and the easing of geopolitical tensions.

Crude Oil

U.S. West Texas Intermediate and international-benchmark Brent crude oil finished modestly higher on Thursday, continuing the rebound rally that drove the market higher the previous session. Concerns that the U.S. may reimpose sanctions on Iran helped underpin the markets as this represents a threat to supply. Gains were likely limited by this week’s higher than expected U.S. crude oil and gasoline inventories as well as rising U.S. production.

Natural Gas

Natural gas futures extended this week’s gains following the release of a government report that showed a bigger-than-expected storage withdrawal. According to the U.S. Energy Information Administration, domestic supplies of natural gas fell by 18 billion cubic feet for the week ended April 20. Traders were looking for a decrease of about 12 billion cubic feet although the estimates ranged from 9 bcf to 22 bcf.