US open: Stocks higher despite downwardly revised Q1 GDP figures

(Sharecast News) - Major indices were in the green early on Thursday as the S&P 500 continued to hover near its all-time high despite a downwardly revised Q1 GDP reading. As of 1525 BST, the Dow Jones Industrial Average was up 0.45% firmer 43,177.93, while the S&P 500 advanced 0.48% to 6,121.36 and the Nasdaq Composite came out of the gate 0.54% firmer at 20,081.57.

The Dow opened 195.50 points higher on Thursday, more than reversing losses recorded in the previous session as traders digested ongoing newsflow from the Middle East, as well as uncertainty regarding the Federal Reserve's next policy decision.

Thursday morning's moves come as the S&P 500 sits within 1% of its February record, with the index bouncing back as trade pressures and tensions in the Middle East both seemed to have somewhat eased.

Thursday's primary focus looked set to be news that the US economy contracted at a much faster pace than initially reported during Q1, according to the Commerce Department, with gross domestic product, the broadest measure of economic output, contracting at an annualised rate of -0.5%, worse than the 0.2% decline reported in the second estimate. Consumer spending grew at a rate of just 0.5% in Q1, down from 1.2% in an earlier estimate and the weakest rate in over four years.

Elsewhere on the macro front, Americans lined up for unemployment benefits at a decelerated pace in the week ended 21 June, according to the Labor Department. Initial jobless claims fell by 10,000 236,000, down from the previous week's upwardly revised 246,000 print and better than the 245,000 analysts had expected to see. Continuing claims, on the other hand, increased to 1.97m from 1.93m, while the four-week moving average, which aims to smooth out week-to-week volatility, decreased by 750 to 245,000.

On another note, the Chicago Federal Reserve's national activity index increased to -0.28 in May, up from a revised -0.36 reading in April. Although two of the four broad categories of indicators improved, three categories still delivered a negative contribution in May.

Still on data, US pending home sales increased 1.1% year-on-year in May, according to the National Association of Realtors, marking the first annual rise in six months, while durable goods orders surged 16.4% month-on-month in May to $343.6bn, according to the Census Bureau, following April's revised 6.6% slump and coming in well ahead of expectations for an 8.5% rise.

Coming up next, the Kansas Federal Reserve's June manufacturing activity report will be released at 1600 BST.

In the corporate space, drugstore chain Walgreens Boots Alliance reported Q3 profits that came in ahead of Wall Street expectations.

Sportswear giant Nike will report earnings after the close.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Amgen Inc. (AMGN) $282.58 2.31% Boeing Co. (BA) $202.70 1.91% Caterpillar Inc. (CAT) $377.44 1.58% Goldman Sachs Group Inc. (GS) $679.82 1.49% JP Morgan Chase & Co. (JPM) $287.74 1.30% Dow Chemical Co. (DOW) $27.15 1.23% Cisco Systems Inc. (CSCO) $68.55 0.96% Walgreens Boots Alliance, Inc. (WBA) $11.44 0.84% Nike Inc. (NKE) $61.27 0.72% Unitedhealth Group Inc. (UNH) $304.14 0.70%

Dow Jones - Fallers

Intel Corp. (INTC) $22.39 -0.84% Merck & Co. Inc. (MRK) $79.06 -0.77% McDonald's Corp. (MCD) $283.90 -0.58% Salesforce.Com Inc. (CRM) $266.26 -0.56% Procter & Gamble Co. (PG) $158.09 -0.55% Verizon Communications Inc. (VZ) $41.92 -0.46% Apple Inc. (AAPL) $200.97 -0.43% Visa Inc. (V) $343.93 -0.39% Home Depot Inc. (HD) $360.62 -0.34% Walmart Inc. (WMT) $96.98 -0.29%

S&P 500 - Risers

Nektar Therapeutics (NKTR) $32.56 36.96% Freeport-McMoRan Inc (FCX) $43.83 5.35% Albemarle Corp. (ALB) $63.47 5.12% McCormick & Co. (MKC) $77.18 4.81% Arista Networks Inc. (ANET) $100.92 4.79% Nvidia Corp. (NVDA) $155.88 3.99% Flowserve Corp. (FLS) $50.47 3.88% Northern Trust Corp. (NTRS) $123.33 3.72% CIGNA Corp. (CI) $327.42 3.61% Universal Health Services Inc. (UHS) $181.98 3.58%

S&P 500 - Fallers

Equinix, Inc. (EQIX) $721.92 -19.66% TripAdvisor Inc. (TRIP) $12.21 -9.42% Iron Mountain Inc (New) (IRM) $96.85 -5.68% Digital Realty Trust (DLR) $164.59 -4.45% Advance Auto Parts (AAP) $45.31 -2.93% NetApp Inc. (NTAP) $103.83 -2.89% Paypal Holdings Inc (PYPL) $72.07 -2.45% Costco Wholesale Corp. (COST) $978.83 -2.34% Copart Inc. (CPRT) $47.54 -2.32% Jefferies Financial Group Inc. (JEF) $54.63 -2.31%

Nasdaq 100 - Risers

Nvidia Corp. (NVDA) $155.88 3.99% Illumina Inc. (ILMN) $94.26 2.89% Vodafone Group Plc ADS (VOD) $10.60 2.85% Synopsys Inc. (SNPS) $492.38 2.59% Incyte Corp. (INCY) $70.40 2.49% Amgen Inc. (AMGN) $282.58 2.31% Microchip Technology Inc. (MCHP) $71.46 1.95% DENTSPLY Sirona Inc. (XRAY) $16.02 1.78% Align Technology Inc. (ALGN) $189.63 1.71% Intuitive Surgical Inc. (ISRG) $533.70 1.66%

Nasdaq 100 - Fallers

Tesla Inc (TSLA) $327.44 -3.46% Workday, Inc. (WDAY) $233.49 -2.51% Paypal Holdings Inc (PYPL) $72.07 -2.45% Costco Wholesale Corp. (COST) $978.83 -2.34% Asml Holdings N.V. (ASML) $797.77 -2.20% eBay Inc. (EBAY) $72.91 -2.19% Automatic Data Processing Inc. (ADP) $297.75 -2.14% Paychex Inc. (PAYX) $139.14 -2.12% American Airlines Group (AAL) $11.18 -2.03% Ross Stores Inc. (ROST) $125.81 -1.84%