U.S. stocks jumped on news of weekly jobless claims dropping by 20,000 to 331,000 when estimates were for 337,000 claims. The Dow Jones (^DJI) finished the day up nearly 200 points, gaining 1.2%. The S&P 500 (^GSPC) gained 1.2% as well, while the Nasdaq (^IXIC) was up 1.1% to stay comfortably over 4,000.
One of the day's biggest risers was Green Mountain Coffee Roasters (GMCR) which finished the day up 26 percent on news that Coca-Cola will be taking a 10 percent stake in the company for $1.25 billion. The companies will work together to launch Green Mountain's new cold drink machine due as soon as October. Shares of its likely new rival, SodaStream (SODA), began the early morning down but bounced back and finished the day up 7 percent. Green Mountain also reported adjusted earnings of 96 cents a share beating estimates by 6 cents, while revenue rose almost a percent to $1.39 billion but missed on estimates of $1.41 billion.
On the opposite end of the spectrum, one of the day's biggest fallers was Twitter (TWTR) which finished the day down a whopping 24 percent on concerns about slowing user growth as well as user fatigue. The sell-off came despite the fact that Twitter beat on the top and bottom line. The declines in user growth undercut those results. The company added just 9 million new monthly active users. That was a gain of 3-point-8 percent, far less than the 6-point-4 percent in the previous period and the fourth consecutive quarter of slowing growth.
Online radio service Pandora (P) saw shares fall 10 percent after it lowered its guidance for 2014, despite posting its most profitable quarter in its history. Pandora forecasted an adjusted profit of 13 cents a share to 17 cents a share on $870 million to $890 million for 2014 when analysts were expecting earnings of 19 cents a share on revenue of $896.3 million.
Yelp (YELP) shares jumped finishing the day up 19 precent after it posted a 72 percent increase in revenue to $70.7 million which also beat estimates of $67.3 million. The company also posted a loss in profits of 3 cents a share missing on estimates for a loss of 2 cents a share. Yelp also said it expects first-quarter revenue to fall in the range of $73.5 million to $74.5 million beating estimates of $73.2 million.
Disney (DIS) shares rose 6 percent after the company posted earnings of $1.04 a share beating estimates of 92 cents a share and seeing revenue rise 9 percent to $12.31 billion beating estimates of $12.25 billion. The beat was helped by Disney's hit movie "Frozen" which grossed over $870 million world-wide and is headed to Broadway.
Another big riser is Akamai Technologies (AKAM) which finished the day soaring 20 percent after the company posted adjusted earnings of 55 cents a share which beat estimates by 3 cents while revenue rose 15 percent to $436 million beating estimates of $422.4 million. The networking company, which helps deliver content, has benefited from a surge in internet traffic.