The stock markets in the United States rallied primarily driven by the favorable report on jobs data released by the Department of Labor and the better-than-expected corporate earnings today.
Data from the Labor Department showed that the number of people who filed claims for unemployment benefits declined more than expected last week, a signal that the labor market continues to improve. According to the agency, the initial claims for state unemployment benefits dropped 20,000 to 331,000 (seasonally adjusted).
Millan Mulraine, deputy chief economist at TD Securities said, “The underlying momentum in the labor market remains positive and it is very likely that this is the narrative that we get from tomorrow’s employment report.”
On the other hand, Greg Woodard, portfolio strategist at Manning and Napier Inc opined, “Investors have really turned their focus back on the larger macro data. Earnings seem to be coming in decent. Looking at economic data, you have patches of weakness and you have patched of strength. We think the broad picture suggests that we should continue to have expansion in the U.S. It’s going to be somewhat sluggish.”
U.S. Markets
- Dow Jones Industrial Average (DJIA)- 15,628.09 (+1.22%)
- S&P 500- 1,773.72 (+1.26%)
- NASDAQ- 4,058.22 (+1.16%)
- Russell 2000- 1,103.56 (+0.96%)
European Markets
- EURO STOXX 50 Price EUR- 3,010.79 (+1.63%)
- FTSE 100 Index- 6,558.28 (+1.55%)
- Deutsche Borse AG German Stock Index DAX- 9,256.58 (+1.54%)
Asia Pacific Markets
- Nikkei 225- 14,155.12 (-0.18%)
- Hong Kong Hang Seng Index- 21,423.13 (+0.72%)
- Shanghai Shenzhen CSI 300 Index- 2,202.45 (-1.14%)
Stocks in Focus
The stock price of Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) surged more than 26% to $102.10 per share following a 45% jump during the extended hours trading yesterday after its announcement that The Coca-Cola Company (NYSE:KO) acquired a 10% minority equity position of its shares as part of its partnership agreement. The companies agreed to work together in developing and introducing the Coca-Colas’ global brand portfolio in the next Keurig Cold at-home beverage system of Green Mountain.
The Walt Disney Company (NYSE:DIS) gained more than 5% to $75.56 per share after reporting first-quarter earnings that beat the consensus estimate of Wall Street analysts. The world’s largest entertainment company posted $1.03 earnings per share, an increase of 34% from $0.77 in the year-ago quarter. Its revenue rose 9% to $12.30 billion from $11.34 billion in the same period a year earlier.
On the other hand, the shares of Twitter Inc (NYSE:TWTR) declined more than 24% to $50.03 per share after investors were disappointed with the slow growth of its monthly active users (MAUs). The popular microblogging company reported better-than-expected revenue of $243 million. However, UBS analyst Eric Sheridan said, “A lack of mainstream adoption or a more simplified use case was a worry of ours coming out of the IPO and seems to have come to the fore faster than we had anticipated.” He recommended a Sell rating for the stock.
