Tech gains led by Facebook, Apple
Stocks were mixed in early trading on more signs the U.S. economy is recovering after third-quarter GDP bounced back by 33.1% and jobless claims continued to drop.
The Nasdaq Composite rose nearly 0.5% while the Dow Jones Industrial Average fell over 100 points or 0.5% and the S&P 500 was little changed.
HOW MAY RECORD GDP IMPACT 2020 ELECTION
ECONOMIC REBOUND
Third-quarter GDP rebounded by a record 33.1% following a record second-quarter decline brought on by the coronavirus pandemic. Initial jobless claims data for the week ending Oct. 24 fell to 751,000 while continuing claims held at 7.7 million. Though improving, unemployment levels remain elevated.
Energy stocks remained a headwind with oil falling over 5% to the $35 per barrel level.
MARVELL-INPHI $40B CHIP MERGER
In M&A news, Marvell Technology announced its intention to acquire Inphi for $10 billion to create a semiconductor giant worth $40 billion in market value, sending those shares soaring. This is the second blockbuster chip deal this week after AMD and Xilinx's $35 billion tie-up.
MARVELL-INPHI COMBO TO CREATE $40B CHIP GIANT
Separately, LVMH and Tiffany & Co. said in a statement the two companies had agreed upon a lower price for Tiffany shares, with LVMH buying Tiffany at $131.50 a share, down from the initial offer of $135 per share.
COVID-19 FEARS GRIP SENTIMENT
Dealmaking is helping sentiment after the Dow fell 942 points, a decline of 3.4%, as COVID-19 fears gripped investors across the globe as Germany and France announced new lockdown measures.
The U.S., in particular, continues to struggle with COVID-19, as the total number of cases in the country topped 8.8 million on Wednesday, according to data from Johns Hopkins University, resulting in at least 227,000 deaths.
Moderna shares rose after the company disclosed it took in $1.1 billion for COVID-19 vaccine orders which could be dispersed in 2021.
DOW DROPS 942 POINTS, AS S&P, NASDAQ TURN NEGATIVE FOR OCTOBER
Boeing said it would cut an additional 7,000 jobs after it announced its fourth straight quarterly loss as the pandemic continues to hurt business.
EARNINGS, EARNINGS, EARNINGS
Traders will get a look at the latest results from four of the largest companies in the S&P 500, when Apple Inc., Amazon.com Inc., Alphabet Corp. and Facebook Inc. report their latest quarterly earnings after the close of trading.
Comcast Corp. and e-commerce company Shopify were higher after both reported better-than-expected results.
Pinterest, Anheuser Busch Inbev NV and Tapestry shares also gained after reporting its quarterly results.
Approximately 40% of the companies in the S&P 500 have reported calendar third-quarter results, with more than 80% of them beating top- and bottom-line expectations.
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Commodities continued to tank, with oil sinking 5% to below $36 a barrel, while gold fell 0.8% to $1,863.90 an ounce.
European indices also rebounded on Thursday, as the STOXX 600 rose 0.1% and the German DAX climbed 0.5%.
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