This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Stocks Gain as China Manufacturing Shines, Ford Revs

NEW YORK ( TheStreet) -- Markets traded higher Thursday amid strong earnings from bellwethers 3M (MMM - Get Report) and Ford (F - Get Report) combined with improved manufacturing data from China, the world's second largest economy. 

The S&P 500 rose 0.33% to 1,752.07 while the Dow Jones Industrial Average was up 0.62% to 15,509.27. The Nasdaq added 0.56% to 3,928.96.

"We took our lead from the strength coming out of China's numbers last night," said Jon Sablowsky, head of trading at Brownstone Investment Group. "The numbers that have been coming out of the companies has been mediocre -- sort of typical sloppy top line, not seeing a lot of growth -- but ... it's providing some comfort."

Ford rose more than 1% after the auto company's earnings lifted to $2.6 billion or 45 cents a share, beating expectations for 38 cents a share. Higher demand for its F-Series pickups in the U.S. helped boost results.

3M gained slightly after the diversified technology company beat expectations with third quarter revenues up 6% to $7.92 billion. It earned $1.78 a share in the third quarter up from $1.65 per share in the prior corresponding period. 

"This is one of the most watched weeks for earnings and investors want to see companies meeting guidance - the Chinese data also underscored stronger global demand," Prudential Financial market strategist Quincy Krosby said in a phone interview. "We're also seeing global companies like 3M report strong numbers and bellwethers like the Dow transports move higher. Lower gasoline prices have strong correlation with market performance and give consumers more disposable income." Prudential Financial manages $1 trillion in assets.

Chinese manufacturing output strengthened more than expected in October, suggesting growth in the world's second-largest economy is gradually recovering. The 50.9 Purchasing Managers Index gauge released by HSBC was up from 50.2 in September.

Amazon  (AMZN - Get Report), the world's largest online retailer, reported after the regular trading session a loss of 9 cents a share on sales of 17.09 billion. The profit loss was in-line with analysts polled by Bloomberg data, but sales beat the estimate of $16.76 billion. Shares were climbing 5.2% to $349.50 in the after-hours session.

Software giant  Microsoft  (MSFT - Get Report) after the bell reported earnings of 62 cents a share on revenue of $18.53 billion. Analysts had forecast earnings of 54 cents a share in its fiscal first quarter on revenue of $17.79 billion. The software company was surging 5.8% to $35.66 in after hours trading.

AT&T   (T) lost 1.8% to $34.63 even as its third-quarter earnings topping Wall Street expectations. AT&T earned 66 cents a share on revenue of $32.16 billion, helped by the strength in smartphone sales. Analysts were expecting profit of 65 cents a share on sales of $32.19 billion.

Gold futures for the December contract rose 1.2% to settle at $1,350.30, while WTI crude oil for December delivery dropped 0.26% to close at $97.11. The benchmark 10-year Treasury was dipping 4/32, boosting the yield to 2.516%, while the U.S. dollar index was 0.14% lower at $79.17.

Meanwhile, applications for domestic unemployment benefits are falling at a slower than expected pace data. Jobless claims fell by 12,000 to 350,000 in the week ending October 19, according to a Labor Department report today. Consensus expectations were for a fall to 340,000. 

The U.S. trade deficit was also broadly unchanged in August as global economic growth continues to stutter. The gap widened 0.4 percent to $38.8 billion according to the Commerce Department, above expectations for a $39.4 billion deficit.

--By Jane Searle and Joe Deaux in New York

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AMZN $675.71 11.00%
F $14.09 3.15%
MMM $167.00 -0.45%
MSFT $49.90 -2.04%
AAPL $95.03 -2.90%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs