US open: Stocks trade higher following GDP data, earnings still in focus

Wall Street stocks were in the green early on Thursday as market participants thumbed over a number of big-name earnings reports and digested Q1 GDP data.

As of 1525 BST, the Dow Jones Industrial Average was up 0.65% at 33,518.87, while the S&P 500 advanced 0.89% to 4,092.08 and the Nasdaq Composite came out the gate 1.22% firmer at 11,998.86.

The Dow opened 217.00 points higher on Thursday, almost erasing losses recorded in the previous session as investors digested a number of major corporate earnings.

Quarterly earnings were in focus yet again early on Thursday, with Facebook parent company Meta Platforms beating expectations and providing stronger-than-anticipated guidance for the current quarter, and trade bellwether Caterpillar also posting better-than-expected numbers.

American pharmaceuticals maker Eli Lilly reported continued core business growth and pipeline momentum in its first-quarter numbers on Thursday, despite missing Wall Street expectations on its earnings, while rival Merck said that, despite a 9% decrease in total worldwide sales year-on-year to $14.49bn, it saw a "strong underlying performance" across key growth drivers, particularly in oncology and vaccines.

Southwest Airlines reported a wider-than-expected loss as the impact of its holiday meltdown stretched well into 2023, and American Airlines beat earnings estimates by $0.01 per share even as revenues fell short of expectations.

Amazon and Intel will publish earnings after the close of trading.

On the macro front, the American economy grew more slowly than anticipated at the start of 2023, according to the Department of Commerce, which said gross domestic product expanded at a quarterly annualised pace of 1.1%. Economists at Pantheon Macroeconomics had pencilled-in a slowdown to a pace of 0.7% and before Thursday's release cautioned that the consensus estimate of 1.9% had likely not yet been fully updated and was therefore likely lower. Furthermore, Commerce revised its previous estimate for fourth-quarter GDP growth up from 2.0% to 2.6%.

Elsewhere, fewer Americans filed for unemployment benefits during the previous week than economists had anticipated, according to the Department of Labor, which said in seasonally adjusted terms, the number of initial unemployment claims dropped by 16,000 over the week ending on 22 April to 230,000. Economists had pencilled-in a reading of 250,000. The four-week moving average, meanwhile, slipped by 4,000 to 236,000.

On another note, US pending home sales tumbled 23.2% year-on-year in March, according to the National Association of Realtors, following a 21.1% slump in February to mark a 22nd straight month of declines.

Still to come, April's Kansas Federal Reserve manufacturing index will be on deck at 1600 BST.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Verizon Communications Inc. (VZ) $37.94 2.76%
Boeing Co. (BA) $207.10 2.00%
Microsoft Corp. (MSFT) $300.95 1.89%
Salesforce.Com Inc. (CRM) $194.29 1.45%
Home Depot Inc. (HD) $292.01 1.37%
Walt Disney Co. (DIS) $97.81 1.24%
Goldman Sachs Group Inc. (GS) $340.56 1.19%
Apple Inc. (AAPL) $165.66 1.16%
Travelers Company Inc. (TRV) $178.66 1.16%
American Express Co. (AXP) $157.16 0.92%

Dow Jones - Fallers

Caterpillar Inc. (CAT) $207.26 -4.13%
Intel Corp. (INTC) $28.64 -1.41%
Merck & Co. Inc. (MRK) $111.88 -1.37%
Cisco Systems Inc. (CSCO) $46.11 -0.92%
Amgen Inc. (AMGN) $237.22 -0.66%
Coca-Cola Co. (KO) $63.27 -0.44%
Nike Inc. (NKE) $123.34 -0.41%
International Business Machines Corporation (CDI) (IBM) $125.79 -0.05%
Dowdupont Inc. (DWDP) $0.00 0.00%
Visa Inc. (V) $228.24 0.04%

S&P 500 - Risers

Meta Platforms Inc. (META) $239.56 14.40%
Hasbro Inc (HAS) $56.66 10.21%
FMC Technologies Inc. (FTI) $13.80 7.73%
Pentair plc (PNR) $55.88 6.61%
CBRE Group Inc (CBRE) $74.42 6.40%
Fidelity National Information Services Inc. (FIS) $58.19 6.11%
Charter Communications Inc. (CHTR) $339.56 5.90%
Comcast Corp. (CMCSA) $38.56 5.59%
Mattel Inc. (MAT) $17.87 5.30%
CH Robinson Worldwide Inc (CHRW) $97.34 5.24%

S&P 500 - Fallers

Align Technology Inc. (ALGN) $312.21 -11.94%
AbbVie Inc (ABBV) $150.79 -6.80%
National Oilwell Varco Inc. (NOV) $16.85 -6.49%
United Rentals Inc. (URI) $351.52 -6.26%
Southwest Airlines Co. (LUV) $29.00 -6.15%
Raymond James Fin Corp. (RJF) $87.11 -5.52%
IQVIA Holdings Inc. (IQV) $180.07 -5.22%
Willis Towers Watson Public Limited Company (WTW) $225.57 -5.13%
Analog Devices Inc. (ADI) $171.55 -5.04%
Interpublic Group of Companies Inc. (IPG) $34.75 -4.92%

Nasdaq 100 - Risers

Meta Platforms Inc. (META) $239.56 14.40%
Hasbro Inc (HAS) $56.66 10.21%
Qurate Retail Inc. (QRTEA) $0.74 6.09%
Charter Communications Inc. (CHTR) $339.56 5.90%
Comcast Corp. (CMCSA) $38.56 5.59%
American Airlines Group (AAL) $13.29 4.32%
KLA-Tencor Corp. (KLAC) $370.82 3.77%
Dish Network Corp. (DISH) $7.16 2.95%
eBay Inc. (EBAY) $44.60 2.86%
Paypal Holdings Inc (PYPL) $73.96 2.64%

Nasdaq 100 - Fallers

Align Technology Inc. (ALGN) $312.21 -11.94%
Sirius XM Holdings Inc (SIRI) $3.44 -5.75%
Analog Devices Inc. (ADI) $171.55 -5.04%
Microchip Technology Inc. (MCHP) $70.63 -4.70%
Biomarin Pharmaceutical Inc. (BMRN) $90.20 -3.01%
Skyworks Solutions Inc. (SWKS) $100.80 -1.95%
Illumina Inc. (ILMN) $206.96 -1.90%
Broadcom Inc. (AVGO) $605.41 -1.75%
Texas Instruments Inc (TXN) $161.72 -1.67%
Workday, Inc. (WDAY) $184.19 -1.59%