Stocks pulled back from record highs set earlier Thursday as the 10-year yield rose following the stronger-than-expected GDP report, offsetting blockbuster tech earnings.
The Dow Jones Industrial Average gained 44 points, or 0.13%, while the S&P 500 and the Nasdaq Composite were higher by 0.15% and 0.39%, respectively. The Dow had gained as many as 436 points before pulling back as the 10-year yield rose as many as 7 basis points to 1.69%.
The early gains, which ran both the S&P and the Nasdaq to intraday all-time highs, came after data released Thursday by the Commerce Department showed the U.S. economy grew at a 6.4% annual pace during the first three months of the year, exceeding the 6.1% growth that analysts surveyed by Refinitiv were expecting.
President Biden on Wednesday evening delivered his first address to a joint session of Congress, laying out his plans for trillions of dollars of spending and tax increases on the wealthy.
Ticker Security Last Change Change % AAPL APPLE, INC. 133.47 -0.11 -0.08%
Looking at stocks, Apple Inc. reported quarterly sales surged 54% from a year ago as all of its product categories saw double-digit growth. The iPhone maker hiked its quarterly dividend by 7% and said it would buy back an additional $90 worth of its shares.
Ticker Security Last Change Change % FB FACEBOOK, INC. 325.96 +18.86 +6.14%
Facebook Inc. beat on both the top and bottom lines, fueled by a 30% increase in the average ad price. The company’s user base in the U.S. and Canada held steady at 195 million daily active users. The stock touched a fresh record.
Ticker Security Last Change Change % MCD MCDONALD’S CORP. 234.96 +2.58 +1.11%
McDonald’s Corp.’s net revenue topped pre-pandemic levels as U.S. same-store sales grew 13.6% during the quarter. Global same-store sales, meanwhile, rose 7.5% as some countries prolonged their COVID-19 lockdowns.
Ticker Security Last Change Change % CAT CATERPILLAR, INC. 225.36 -7.37 -3.17%
Caterpillar Inc. topped Wall Street estimates for earnings and sales as the reopening of the economy boosted demand for construction equipment. CEO Jim Umpleby said the heavy equipment manufacturer has so far been able to successfully navigate the supply chain disruptions that have impacted other companies.
Ticker Security Last Change Change % F FORD MOTOR CO. 11.24 -1.18 -9.46%
Ford Motor Co. said the global chip shortage could cause production to be cut in half during the current quarter and cost it $2.5 billion this year. Both earnings and revenue topped analyst estimates.
In commodities, West Texas Intermediate crude oil jumped 76 cents to $64.62 per barrel and gold slid $5.90 to $1,768 an ounce.
Overseas markets were mixed.
In Europe, Britain’s FTSE 100 rose 0.14%, France’s CAC 40 slipped 0.01% and Germany’s DAX 30 declined 0.86%.
Asian markets rallied across the board with Japan’s Nikkei 225 edging up 0.21%, China’s Shanghai Composite index gaining 0.52% and Hong Kong’s Hang Seng index climbing 0.8%.