Stocks rose on Thursday, with the Nasdaq jumping 1.7% higher, as market participants weighed a busy day of economic reports and the latest batch of corporate earnings reports. The Dow Jones Industrial Average climbed over 200 points, while the S&P 500 added 1.1%.
Here's how the market settled on Thursday:
S&P 500 Index (SPY ): +1.10% or +44.21 points to 4,060.43
Dow Jones Industrial Average (DIA ): +0.61% or +205.57 points to 33,949.41
Nasdaq Composite Index (QQQ ): +1.76% or +199.06 points to 11,512.41
In focus on Thursday, the U.S. GDP grew at a 2.9% annual rate in the final quarter of 2022, according to the Commerce Department, topping expectations and demonstrating expansion despite fears of a looming recession. However, it represents a slight cooldown from the government's third-quarter reading.
Moreover, personal consumption expenditures, which comprise about two-thirds of domestic activity, grew by 2.1%, also a slowdown from the previous quarter's 2.3%.
Elsewhere in economic news, sales of new homes in the U.S. rose 2.3% in December to a seasonally adjusted annualized rate of 616,000, according to the Census Bureau. Meanwhile, initial unemployment claims fell to 187,000, marking the lowest level since April 2022.
Also in the spotlight, Tesla (TLSA ) reported strong profits last quarter, earning $3.7 billion in net income on $24.3 billion in revenue. The electric car maker also announce it would deliver about 1.8 million vehicles this year, with would represent a 37% increase in production. Shares rose nearly 11%, helping boost technology names and the tech-heavy Nasdaq.
IBM (IBM ) reported fourth-quarter earnings that came in slightly above expectations with revenue of $16.69 billion. The company also announced it will cut about 3,900 workers from tis IT Services business, Kyndryl Holdings. IBM said it will spend $300 million in the first quarter to cover employee severance costs.
American Airlines (AAL ) shares rose over 2% following the carrier's fourth-quarter beat. The company said it expects full-year profit to also top forecasts as the travel industry continues to recovery.
Southwest (LUV ) shares fell 3% after the carrier announced a $22 million loss in the fourth-quarter due to last month's large scale holiday cancellations. The company also cut revenue forecasts for the year to $350 million as it continued to deal with ongoing cancellations and reduced bookings.
Beyond earnings, Meta Platforms (META ) rose over 4% after the tech company announced it will restore former President Donald Trump's Instagram and Facebook accounts after a more than two-year ban.
Toyota (TM ) CEO Akio Toyoda announced Thursday he will be stepping down from his role on April 1 to be replaced by current Chief Branding Officer Koji Sato. Toyoda will transition to become Chairman of the Board at Toyota.
Bed Bath & Beyond (BBBY ) shares dropped 22% after the retailer warned it does not have enough cash to pay down its debts on Thursday in a U.S. Securities and Exchange Commission (SEC) filing. The company's market value is currently about $278 million.
Looking ahead, market participants will start to shift their focus towards the Federal Reserve's next policy meeting next week. The central bank is widely expected to announced a 25 basis point increase as it continues to work to stabilize prices.
