By Ellie Ismailidou and Sara Sjolin, MarketWatch
Facebook posts largest increase in 2 years; Under Armour jumps
22.5%
U.S. stocks finished higher Thursday, boosted by a jump in oil
prices along with an earnings-driven surge in the shares of
Facebook Inc. and Under Armour Inc.
In a day marked by big swings, the S&P 500 closed up 10.41
points or 0.6%, at 1,893.36, after temporarily trading above the
psychologically important level of 1,900, with nine of its 10 main
sectors in positive territory, led by energy and utilities. Health
care was the only sector in the red, down 2.3%.
The Dow Jones Industrial Average closed up 125.18 points, or
0.8%, at 16,069.64, swinging from a triple-digit gain to a
double-digit loss and back again over the course of the day. The
Nasdaq Composite rose as much as 1% in the early afternoon, but
closed up 38.51 points, or 0.9%, at 4,506.68.
Read:Facebook's best day in years nearly adds a DuPont to its
market cap
(http://www.marketwatch.com/story/facebooks-best-day-yet-nearly-adds-a-dupont-to-its-market-cap-2016-01-28)
Earlier in the day, crude oil futures leapt more than 7%
following reports that Russia and the Organization of the Petroleum
Exporting Countries would discuss a potential output cut. Oil gave
back most of those gains after a news report
(http://www.marketwatch.com/story/oil-pushes-lower-again-as-us-crude-inventories-jump-2016-01-28)
said OPEC officials denied plans for a meeting. WTI oil futures
settled 2.9% higher at $33.22, but well below session's $34.82
high.
Watch this MarketWatch video chat: How to know when oil has hit
bottom?
(http://www.marketwatch.com/story/how-to-know-when-oil-has-hit-bottom-live-video-chat-with-experts-2016-01-27)
The heightened volatility in the equity market reflects that
"there are a lot of variables in play and different investors tease
out the data that will support their thesis," said Dan Farley, an
investment strategist at U.S. Bank Wealth Management.
One drag on stocks was a steeper-than-expected slide in orders
for durable goods that could mean the economy shrank
(http://www.marketwatch.com/story/durable-goods-orders-decline-could-mean-economy-shrank-in-fourth-quarter-2016-01-28)
in fourth quarter. Orders for long-lasting goods slid 5.1% in
December
(http://www.marketwatch.com/story/durable-goods-orders-slide-51-in-december-2016-01-28),
far weaker than the 1.5% forecast decline. That data come a day
after the Federal Reserve recognized a slowdown in the global
economy but appeared to leave the door open to a March rate
increase.
Oil, meanwhile, continued to be a key factor in momentum for
equities.
U.S. stocks throughout January have moved mostly in tandem with
swings in oil as the ultralow prices were feared to trigger
defaults in the energy sector, freeze credit lines and destroy
wealth in emerging markets, such as Russia, Saudi Arabia and
Brazil.
See: Blame the robots as oil, stocks trade in tandem
(http://www.marketwatch.com/story/blame-the-robots-as-oil-stocks-trade-in-tandem-2016-01-26).
"There's two key factors driving markets at the moment, the Fed
and oil," said Craig Erlam, senior market analyst at Oanda, in
emailed comments.
Oil's rebound gave a boost to energy companies' stocks, and the
energy sector led the S&P 500 Thursday afternoon with a 3.2%
gain. Chevron Corp. (CVX), up 3% and Exxon Mobil Corp. (XOM), up
2.3%, were among the Dow's best performers.
Heavy-machinery maker Caterpillar Inc. (CAT), whose product
lines include equipment for the oil and gas industry, climbed 4.7%,
leading the blue-chip gauge. The company on Thursday reported
fourth-quarter earnings that beat expectations, but its sales fell
short
(http://www.marketwatch.com/story/caterpillar-shares-rise-on-fourth-quarter-earnings-beat-2016-01-28).
Among other big moves in individual stocks, a 15.5% jump for
Facebook Inc. (FB) on the back of a well-received earnings report
(http://www.marketwatch.com/story/facebook-shares-surge-as-quarterly-profit-tops-1-billion-2016-01-27)
helped lift the Nasdaq.
Read:It's 'impossible to deny Facebook's momentum'
(http://www.marketwatch.com/story/its-impossible-to-deny-facebooks-momentum-analyst-2016-01-28)
Shares of Under Armour Inc. (UA) jumped 22.5%, leading S&P
components, after the athletic apparel company beat fourth-quarter
profit and revenue expectations
(http://www.marketwatch.com/story/under-armours-stock-soars-after-results-beat-expectations-upbeat-outlook-2016-01-28).
Economic data:Pending home sales eked out a small gain in
December
(http://www.marketwatch.com/story/pending-home-sales-inch-up-01-in-december-2016-01-28),
signaling moderate homebuying activity ahead, but falling short of
economists' expectations. The labor market, however, continued to
do fairly well. Initial jobless claims fell last week
(http://www.marketwatch.com/story/us-jobless-claims-fall-16000-to-278000-2016-01-28)
after touching a seven-month high earlier in January.
Movers and shakers: eBay Inc. (EBAY) tumbled 12.4% after the
online marketplace late Wednesday reported a drop in sales
(http://www.marketwatch.com/story/ebay-reports-another-drop-in-revenue-2016-01-27-164853749).
Apple Inc. (AAPL) dipped in and out of positive territory and
closed down 0.7%, following a 6.6% slump on Wednesday that came
after the quarterly earnings report showed slower iPhone sales
growth
(http://www.marketwatch.com/story/iphone-sales-slip-as-apples-growth-boom-ends-2016-01-26).
Alibaba Group Holding Ltd. (BABA) reversed premarket gains and
closed down 3.8%. The China-based e-commerce giant reported fiscal
third-quarter profit and sales that rose above expectations
(http://www.marketwatch.com/story/alibabas-stock-surges-after-profit-sales-beat-2016-01-28).
Time Warner Cable Inc. (TWC) gained 1.5% after the company
reported sales and profit that bested expectations.
Drugmaker Eli Lilly & Co. (LLY) closed down 6% after the
drugmaker reported adjusted earnings that met Wall Street's
forecast
(http://www.marketwatch.com/story/eli-lilly-meets-earnings-forecasts-sticks-to-2016-guidelines-2016-01-28),
though revenue fell slightly short.
Ford Motor Co. (F) shares reversed premarket gains to close down
1.2%. The car maker reported it swung to a profit
(http://www.marketwatch.com/story/ford-swings-to-profit-on-strength-in-namerica-2016-01-28)
in the fourth quarter.
After the closing bell, Amazon.com Inc. (AMZN), Visa Inc. (V)
and Microsoft Corp. (MSFT) are expected to report earnings.
Other markets: Chinese stocks closed at the lowest level in over
a year, as investors digested the Fed statement. Other Asian
markets closed mixed
(http://www.marketwatch.com/story/asian-stocks-unsettled-as-markets-ponder-fed-statement-2016-01-27).
Markets in Europe
(http://www.marketwatch.com/story/european-stocks-fall-as-earnings-fed-weigh-2016-01-28)
were covered in a sea of red, with several heavyweight companies
adding pressure after announcing results.
Gold wavered, while the dollar dropped against most other
currencies.
(http://www.marketwatch.com/story/dollar-could-head-towards-116-if-bank-of-japan-does-nothing-friday-2016-01-28)
(END) Dow Jones Newswires
January 28, 2016 16:24 ET (21:24 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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