Thursday, April 28, 2022

DJIA: 33,916.39, up 614.46
S&P 500: 4,287.50, up 103.54
Nasdaq: 12,871.53, up 382.60

S&P 500 posts best day since March

U.S. stocks finished near their best levels on Thursday as positive earnings from Facebook parent Meta Platforms Inc. provided a catalyst for a month-end rally. Additionally, oversold conditions and depressed positioning continued to serve as contrarian signals supportive of stocks. The S&P 500 rallied 2.5% for its best day since March 9, though still on course for its sharpest monthly drop since March 2020 (-5.3%). The Nasdaq Composite spiked 3.1%, but remains positioned for its worst month in over two years (-9.5%). The Dow jumped 614 points, paring its April decline to 2.2%.

All 11 S&P 500 sectors climbed more than 1%, with Technology stocks pacing the gains amid strength in chipmakers. Qualcomm Inc. rallied 9.5% following a top and bottom line beat and improved outlook. The Communication Services also outperformed amid a 17.6% surge in Meta Platforms Inc. on better-than-expected user metrics. Still, the social media company reported slowing revenue growth and offered soft guidance. Meanwhile, Comcast Corp. slid 6.2% amid concerns of slowing growth in internet subscribers.

Economic data was also in focus. An advance reading of first-quarter U.S. GDP showed the economy unexpectedly contracted at an annualized 1.4% pace following a growth rate of 6.9% during the fourth quarter of 2021. Weakness overseas offset a jump in imports related to strong domestic consumer demand. Separately, weekly initial jobless claims came in at 180,000. Treasuries fluctuated, with the yield on the benchmark 10-year note up one basis point (0.01%) to 2.83%, having risen 50 basis points (0.50%) in April.

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