U.S. stocks closed with solid gains on Thursday as investors looked past the latest headlines and tweets coming from the White House and turned their focus to earnings season, which kicks off on Friday.
Geopolitical issues appeared to fade after President Donald Trump tweeted that a military strike on Syria may not be imminent. Escalating tensions over the Middle Eastern country were seen as a major contributor to weakness in Wednesday’s session.
What are the main benchmarks doing?
The Dow Jones Industrial Average DJIA, +1.21% rose 1.2%, or 293.60 points, to 24,483.05. The S&P 500 SPX, +0.83% ended up 21.80 points, or 0.8%, to 2,663.99. The Nasdaq Composite Index COMP, +1.01% was up 71.22 points, or 1%, to 7,140.25.
The day’s gains were broad, with 24 of the 30 Dow components gaining, along with six of the 11 primary S&P 500 sectors. Financials were particular outperformers, up 1.8%; the group was in focus ahead of major banks reporting results in the coming sessions.
What’s driving markets?
Geopolitical concerns continued to move markets after Trump on Wednesday signaled in a tweet that a missile attack on Syria wasn’t far off, saying, “Get ready, Russia.” But early Thursday, a fresh tweet from Trump sounded less bellicose, as the president posted: “Never said when an attack on Syria would take place. Could be very soon or not so soon at all!”
The possibility of a Western strike against Syrian President Bashar al-Assad, who is backed by Russia, has been growing since a suspected government-sanctioned chemical-weapons attack killed civilians in Damascus over the weekend.
Meanwhile, worries about a potential global trade war are persisting, as a Chinese government spokesman denied Thursday that recently announced policy changes constitute concessions to the Trump administration in the countries’ trade skirmish.
What are strategists saying?
“On one hand, you have earnings that are expected to be strong and the S&P 500 has repeatedly tested its 200-day moving average and held above it. On the other, you have erratic policies and questions over what will happen in Syria, with trade, with the Russia investigation,” said Donald Selkin, chief market strategist at Newbridge Securities.
“There are a lot of positive forces and a lot of negative forces in the market, and the battle between them is leading to a lot of day-to-day volatility, we’re trying to find a direction, each shift has nothing to do with the next, and we’re stuck in a range. It’s a tough environment for investors,” Selkin said.
Which stocks are in focus?
Bed Bath & Beyond Inc.’s stock BBBY, -19.95% tumbled 20% after the home-goods retailer late Wednesday guided earnings for fiscal 2018 below forecasts.
Shares in Zuora Inc. ZUO, +42.86% spiked 43% in their trading debut. The provider of enterprise software late Wednesday priced its initial public offering above the expected range.
Shares of BlackRock Inc. BLK, +1.47% gained 1.5% after the asset-managing giant reported earnings and revenue that came in ahead of forecasts.
Delta Air Lines Inc. DAL, +2.93% rose 2.9% after it reported first-quarter earnings and sales that topped forecasts, though it provided a downbeat outlook for the rest of the year.
Drugstore chain Rite Aid Corp. RAD, -0.61% initially spiked after it reported adjusted results that were better than expected. But shares closed 0.6% lower.
Franklin Resources Inc. BEN, +2.65% rose 2.7% after it increased its stock repurchase program.
What are other markets doing?
Asian stocks mostly closed lower, as Syria tensions and Wednesday’s hawkish Federal Reserve minutes appeared to spur caution among investors. European stocks SXXP, +0.70% closed higher.
Gold futures GCM8, +0.09% fell for the first session in five, settling 1.3% lower to $1,341.900 an ounce, largely in reaction to Fed minutes which hinted at faster pace of rate hikes.
Oil futures CLK8, -0.28% settled slightly higher, settling near three-year highs on Syria tension. May West Texas Intermediate crude rose 25 cents, or 0.4%, to settle at $67.07 a barrel on the New York Mercantile Exchange.
The ICE U.S. Dollar Index DXY, +0.01% advanced for the first session in five, gaining 0.3% to 89.799.
Which economic reports are on tap?
Initial jobless claims fell in the first week of April and returned near the lowest levels since the early 1970s.
