US close: Stocks jump, technology issues lead the pack

US stocks jumped on Thursday, breaking a three-day losing streak as investors analysed a number of corporate earnings and were buoyed by hints of possible new stimulus measures across the Atlantic.

The Dow Jones Industrial Average finished the session 1.87% higher at 17,489, while the S&P 500 advanced 1.69% to reach 2,035.

Earnings in focus

Dunkin Brands, which reported ahead of the bell, slid 0.7% despite posting a rise in third quarter revenue and adjusted earnings per share from a year ago.

Construction and mining equipment manufacturer Caterpillar climbed 1.74% even though its earnings missed forecasts and the company revealed it expects to book $800m in restructuring costs.

Natural resource company Freeport-McMoran rose 0.59% despite swinging to a quarterly loss, while McDonald’s surged 8% after its third quarter earnings beat estimates.

In other company news, eBay jumped 13.92% after reporting better-than-expected earnings late on Wednesday, while Texas Instruments rose 11.93% after its quarterly profit and revenue figures beat expectations.

Unemployment claims rise less than expected

According to the Department of Labor, new claims rose by 3,000 to 259,000 in the week to 17 October, compared with analysts' expectations for a 265,000 reading.

Meanwhile, the average of new claims over the last four weeks fell by 2,000 to a seasonally adjusted 263,250, marking its lowest level since December 1973, the report added.

“We take positive signal from declining labor market separations, which suggest US labor market strength remains intact,” analysts at Barclays said.

Existing home sales increased by 4.7% month-on-month in September to hit an annualised pace of 5.55m versus the 5.39m forecast by economists and a revised 5.30m clip for August.

Acting as a backdrop, European stocks surged after European Central Bank president Mario Draghi revealed more stimulus was on the way.

“We have tasked relevant committees to work on different monetary policies to monitor pros and cons of different instruments," he told journalists at a press conference following the ECB’s announcement that it would keep policy unchanged.

"There was a very rich discussion about all monetary instruments that might be used... and the conclusion was: we are ready to act if needed."

Oil prices staged a solid rebound, with West Texas Intermediate climbing 0.35% to $45.54 a barrel.

S&P 500 - Risers

eBay Inc. (EBAY) $27.58 +13.92%
Citrix Systems Inc. (CTXS) $80.58 +12.04%
Texas Instruments Inc (TXN) $58.09 +11.93%
McDonald's Corp. (MCD) $110.87 +8.12%
Stanley Black & Decker Inc. (SWK) $105.47 +7.46%
Southwest Airlines Co. (LUV) $44.08 +7.41%
Nasdaq Inc (NDAQ) $59.10 +6.95%
Bemis Co. Inc. (BMS) $45.01 +6.89%
Alliance Data Systems Corp. (ADS) $294.49 +6.73%
T. Rowe Price Group Inc. (TROW) $74.25 +6.62%

S&P 500 - Fallers
Tenet Healthcare Corp. (THC) $28.24 -18.87%
AbbVie Inc (ABBV) $48.27 -10.33%
EQT Corp. (EQT) $68.32 -8.02%
Humana Inc. (HUM) $165.11 -6.80%
PulteGroup Inc. (PHM) $18.16 -6.63%
Southwestern Energy Co. (SWN) $11.67 -5.89%
Laboratory Corporation of America Holdings (LH) $109.51 -5.63%
Under Armour Inc. Class A (UA) $93.81 -5.39%
American Express Co. (AXP) $72.50 -5.24%
CIGNA Corp. (CI) $129.49 -5.21%

Dow Jones I.A - Risers
McDonald's Corp. (MCD) $110.87 +8.12%
3M Co. (MMM) $156.00 +4.12%
Boeing Co. (BA) $146.31 +3.63%
Exxon Mobil Corp. (XOM) $82.89 +3.34%
E.I. du Pont de Nemours and Co. (DD) $59.19 +3.33%
Intel Corp. (INTC) $34.40 +3.09%
Walt Disney Co. (DIS) $113.25 +2.87%
Merck & Co. Inc. (MRK) $52.01 +2.81%
Cisco Systems Inc. (CSCO) $29.01 +2.58%
Chevron Corp. (CVX) $91.62 +2.56%

Dow Jones I.A - Fallers
American Express Co. (AXP) $72.50 -5.24%
Unitedhealth Group Inc. (UNH) $113.81 -3.64%
Pfizer Inc. (PFE) $33.33 -0.39%
Nike Inc. (NKE) $132.41 -0.05%