Wall Street Rises On Earnings, Economic Data

US stocks ended higher on Thursday, boosted by robust US earnings and forecasts, while data showed the economy recovered to pre-pandemic levels in the second quarter.

The US economy grew solidly in the second quarter, putting the level of gross domestic product above its pre-pandemic peak, but the pace of GDP growth was slower than economists had expected.

Among the latest upbeat earnings news, shares of Ford Motor Co jumped 3.8 percent as the company lifted its profit forecast for the year, while KFC owner Yum Brands rose 6.3 percent after it beat expectations for quarterly sales.

The day's lower than expected economic data may have calmed a bit of investor angst that the Federal Reserve's "easy money policy" may be going away soon, said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia. Investors also saw "some pretty good earnings today," he said.

Stocks got a boost on Wednesday after the Fed said it was not yet time to start withdrawing its massive monetary stimulus.

Economically sensitive groups including financials, materials and energy led S&P sector gains on Thursday.

The Dow Jones Industrial Average rose 0.44 percent, to 35,085, the S&P 500 gained 0.42 percent, to 4,419 and the Nasdaq Composite added 0.11 percent, to 14,778.

The Dow and S&P 500 hit intraday record highs early in the session.

On the down side, Facebook shares fell 4 percent as the company warned revenue growth would "decelerate significantly" following Apple's recent update to its iOS operating system that would impact the social media giant's ability to target ads. (Reuters)