US open: Stocks surge amid strong earnings and prospect of ECB stimulus

US stocks looked poised to break a three-day losing streak on Thursday, as investors analysed a number of corporate earnings and were buoyed by news from across the Atlantic.

Shortly before 1500 BST, the Dow Jones Industrial Average was up 123 points to 17,292.37, while the S&P 500 and the Nasdaq were 14 and 40 points higher respectively.

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 0.80% even though its earnings missed forecast and the company revealed it expects to book $800m in restructuring costs.

Natural resource company Freeport-McMoran rose 1.71% despite swinging to a quarterly loss, while McDonald’s surged 7.38% after its third quarter earnings beat estimates.

Under Armour slid 0.46% despite posting better-than-expected quarterly earnings.

After the market closes,Microsoft, Capital One Financial, Amazon and Google spin-off Alphabet are all scheduled to report.

In other company news, eBay jumped 8.88% after reporting better-than-expected earnings late on Wednesday, while Texas Instruments rose 7.90% after its quarterly profit and revenue beat expectations.

Unemployment claims rise for first time in three weeks

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.

Still to come on the data front, a report on existing home sales for September is scheduled for release at 1500 BST.

Elsewhere, Asian stocks struggled for direction, as concerns over the health of the Chinese economy continued to worry investors, while 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."

The dollar was broadly flat against the pound and gained 0.22% against the yen, surging 1.36% against the euro, while gold futures edged 0.22% lower to $1,164.60.

Oil prices staged a solid rebound, with West Texas Intermediate climbing 0.96% to $45.64 a barrel, while Brent gained 0.75% to $48.23 a barrel.