US open: Facebook and Verizon push stocks higher after earnings

Well-received earnings from the likes of Facebook and Verizon helped to push US stocks higher at the open on Thursday.

At 1530 BST, the Dow Jones Industrial Average was up 0.3% to 21,778.25, the S&P 500 was 0.2% higher at 2,482.33 and the Nasdaq was 0.5% firmer at 6,457.31.

Spreadex analyst Connor Campbell said: "A flurry of fresh US highs - aided by the latest record peak from Facebook - contrasted with a sour afternoon for the European markets this Thursday.

"The Dow Jones itself got some 21,750-crossing run-off goodwill from the social media giant’s growth - Facebook posted a staggering 71% rise in Q2 profit - despite the stock not actually being part of the index. Investors effectively ignored the day’s shoddy durable goods order reading, which missed estimates at 0.2%, to focus on the so-far successful earnings season, with the likes of Amazon.com still to come this evening."

On the corporate front, Facebook shares rose 5.5% after the company said late on Wednesday that second-quarter profits surged to $3.9bn while revenue rose 44.8% to $9.32bn.

Verizon Communications was also on the front foot, up 6% after its quarterly subscription additions beat expectations, while PayPal gained 1% after better-than-expected quarterly earnings and as it lifted its outlook.

Dow Chemical edged up 0.6% following better-than-expected second-quarter numbers and Procter & Gamble ticked 0.3% higher after its fourth-quarter results.

On the downside, Twitter slumped nearly 12% after its number of monthly active users for the second quarter came in below expectations, while United Parcel Service fell 3% despite reporting a stronger-than-expected quarterly profit.

Mastercard slipped 0.6% despite estimate-topping quarterly earnings, and Southwest Airlines flew 3.6% lower after it said second-quarter profits fell 9% on the back of rising operating expenses.

After the close, earnings are due from Amazon, Expedia, Intel, Mattel and Starbucks.

On the data front, the latest figures from the Labor Department showed the number of Americans filing for unemployment benefits rose more than expected last week. US initial jobless claims were up 10,000 to 244,000 from last week's level, which was revised up by 1,000 to 234,000. Economists had been expecting a smaller increase to 241,000.

Elsewhere, durable goods order also disappointed, unexpectedly falling in June, by 0.2%, versus expectations for a 0.4% increase.