Better-than-expected results boost stocks Dow and GDP are on track for record-tying 14 consecutive gains: constant updates

As traders took in a solid GDP statistic and positive Meta earnings data, stocks advanced on Thursday, with the Dow Jones Industrial Average on track for a 14-day gain.

The Dow closed 42 points, or 0.1%, higher. The Nasdaq Composite rose 1.3%, while the S&P 500 increased by 0.7%. A 14-day streak would equal the 30-stock index's longest winning streak ever recorded dating back to June 1897. Just a little more than a year earlier, in May 1896, The Dow was established.

In contrast to experts surveyed by Dow Jones, who predicted a 2% growth, the gross domestic product increased by 2.4% in the second quarter. The personal consumption expenditures price index increased 2.6% in the second quarter, according to the data, which also revealed that pricing pressures are diminishing. This is less than the 3.2% growth that economists had predicted as well as the 4.1% increase from the previous quarter.

The GDP data and earnings are the latest indications that the U.S. economy is more resilient than anticipated and could avoid a recession, as inflation continues to show signs of easing. Of the companies that have reported thus far, 81% have surpassed analyst expectations, according to FactSet data.

Investors studied comments made by Chair Jerome Powell on Wednesday, in which he hinted that the Federal Open Market Committee will continue to be data-dependent and that the central bank may potentially maintain rates unchanged at existing levels. After receiving a slew of fresh inflation and employment statistics, the central bank reconvenes in September.

According to Jeremy Siegel, a professor at the Wharton School, "those really high rates that terrified me and the market earlier on in the year don't seem to be having as much of a negative effect as I had expected." And that, together with Powell's recent statement that he will consider both sides of the issue, "I think is extremely bullish for the markets."

• The market is up on Thursday.

On Thursday, the main averages started off higher.

By 43 points, or 0.14%, the Dow Jones Industrial Average increased. The Nasdaq Composite rose 1.27% and the S&P 500 rose 0.7%.

• Bank of America enhances Boeing's purchase

Bank of America raised Boeing's stock from neutral to buy. The manufacturer of airplanes revealed its second-quarter financial results on Wednesday, reporting a lower loss and higher revenues than experts had anticipated.

We anticipate aircraft deliveries to return to pre-Covid levels by the mid-2020s, which in turn should drive cash flow generation and the stock higher. "Boeing is participating in the commercial aerospace recovery, as part of the global duopoly in large commercial aircraft manufacturing, with some company-specific challenges," Morgan Stanley said in a note on Thursday.

• Bond rates increase following the GDP report.

According to economists surveyed by Dow Jones, the second quarter's GDP growth rate should be 2.0%.

The yield on the 10-year Treasury note increased by more than four basis points to trade over 3.89%. A basis point is equivalent to 0.01 percentage points, and yields move in the opposite direction of price.

Although the report also revealed softening prices that seem to corroborate the recent dip in inflation readings, the robust economic data might be seen as a hint that the Fed can maintain raising rates.

• GDP during the second quarter exceeds expectations.

In the second quarter, the U.S. economy expanded by 2.4%, exceeding estimates. According to economists surveyed by Dow Jones, the economy should have expanded by 2% in the second quarter. This is the most recent evidence that an economy is resilient and not experiencing a recession.

• Shares of Meta increase by nearly 9% in premarket trading.

After the company's most recent quarterly report, Wall Street analysts believe that Meta's stock still has opportunity to rise after a breakthrough year in 2023.

The efforts made by META in AI continue to increase platform monetization, advertising return, engagement, and EPS. Additionally, there is a September AI event catalyst in the product pipeline, according to Morgan Stanley analyst Brian Novak.