Moscow. October 23. U.S. stock indexes rose Friday on the strong statements of large companies, including Ebay and McDonalds, as well as on the expectation of increased stimulus from the European Central Bank (ECB), reports Bloomberg.
Investors also digested data on the primary applications for unemployment benefits in the U.S., which rose last week on 3 thousand instead of the expected growth by 10 thousand, and sales in the secondary market in September, which jumped 4.7% and approaching the highest since February 2007.
The ECB on Thursday left key interest rates unchanged in the Eurozone. The Central Bank Chairman Mario Draghi said that the Central Bank in December will review the current volume of quantitative easing (QE), expiration date and composition acquired in the framework of the programme assets.
“QE will continue until September 2016 or longer if necessary”, – he said.
“The rally on Thursday is definitely tied to the statements Draghi, said senior investment analyst at Prudential International Investments Advisors, John Praveen. – In addition, expectations about company reporting were extremely low, and it is not surprising that most firms have exceeded their”.
Among the companies already reporting last quarter, 44% exceeded market expectations in terms of revenues, 74% of the rate of profit. Analysts surveyed by Bloomberg predict a decline in profits of companies on average by 6.7% in annual terms.
Shares of the world’s largest network of fast food restaurants McDonald’s Corp. rose on Thursday by 7%, a record pace in seven years. The company increased its revenue in the third quarter from $1.07 billion to $1.31 billion revenues decreased to $6,62 billion, but came higher than market forecasts.
The quotations of the online auction site Ebay Inc. jumped 12% on the back of strong financial results for the last quarter.
The market value of hiscompany Dow Chemical increased by 5%. The company has significantly improved earnings in the third quarter, and increased dividend payments and the buy-back programme of own shares.
The value of the shares of Valeant Pharmaceuticals fell 14% after the collapse of 19% the day before. The company is accused of overstating revenue.
The share price of Southwest Airlines increased by 6.2% against the positive reporting for the last quarter.
The Dow Jones Industrial Average on October 22, jumped 320,55 paragraph (1,87%) and amounted to 17489,16 item.
Standard & Poor’s 500 increased by 33,57 paragraph (1,66%) – to 2052,51 item.
The Nasdaq Composite was up 79,93 points (1.65%) and amounted to 4920,05 item.