By Anora Mahmudova and Carla Mozee, MarketWatch
NEW YORK (MarketWatch) -- The U.S. stock market moved sharply
higher on Thursday, as investors cheered upbeat manufacturing data
from eurozone and better-than-expected earnings from Caterpillar
Inc, 3M Co and General Motors.
Weekly jobless claims rose last week, but remained below the key
300,000 level for the sixth straight week, reflecting the low level
of layoffs taking place in the economy.
Strong quarterly results from Dow components, Caterpillar Inc.,
and 3M sent the Dow Jones Industrial Average (DJI) soaring nearly
200 points, or 1.1%, to 16,655
The S&P 500 (SPX) gained 18 points, or 0.95%, to 1,948.69.
The Nasdaq Composite (RIXF) jumped about 43 points, or around 1%,
to 4,425.2.
Data: Markit said the initial October reading of its eurozone
manufacturing purchasing managers index reached a two-month high at
50.7, above expectations of a reading at 50. The report offered
some upbeat news at a time when worries about slowing global
economic growth have prompted investors to sell off equities
world-wide.
But the report also suggested manufacturers and service
providers don't expect a significant pickup in the pace of activity
in the coming months. Markit will release its initial October
purchasing manufacturing index for the U.S. at 9:45 a.m. Eastern
Time.
The number of people who applied for U.S. unemployment benefits
rose by 17,000 last week to 283,000. Economists polled by
MarketWatch had expected claims to rise to a seasonally-adjusted
285,000 in the week ended Oct. 18.
The Federal Housing Finance Agency was slated to post a report
on home prices for August at 9:00 a.m., and the Conference Board's
leading indicators data are set for release at 10 a.m. Eastern.
Earnings: Shares of Dow industrials component Caterpillar (CAT)
leapt 4.6%. The heavy-equipment maker raised its earnings outlook
for the year to $6.50 a share, from $6.20, while keeping the
midpoint of its revenue view unchanged. Third-quarter adjusted
earnings of $1.72 a share outstripped expectations of $1.36 a
share.
3M (MMM), another component of the Dow Jones Industrial Average,
said third-quarter earnings were $1.98 a share, above expectations
of $1.96 a share from a FactSet survey of analysts. Sales of $8.1
billion, however, were shy of Wall Street's estimate of $8.227
billion. Shares of the maker of Post-it notes and other industrial
goods rose 4.7%.
General Motors (GM.XX) posted earnings, excluding one-time
costs, of 97 cents a share, higher than projections of 95 cents a
share. GM rose 0.9%.
Shares in Tractor Supply Co (TSCO) surged 16%, after it reported
quarterly results after the market close on Wednesday, beating
consensus estimates. The stock was raised to strong buy from
market-perform by Raymond James.
Southwest Airlines Co. (LUV) reported third-quarter adjusted
earnings of 55 cents a share, more than Wall Street's estimate of
53 cents a share. Shares gained 2.5%. Southwest stock gained more
than 85% since the start of the year.
Under Armour (UA), which makes athletic apparel, reported
third-quarter profit and sales above expectations, but shares fell
4.5% after surging 51% so far this year.
Shares of Yelp (YELP) dropped 15%. The online review site late
Wednesday posted better-than-expected third-quarter results but
issued a weak outlook.
After the bell, Amazon.com Inc. (AMZN) and Microsoft Corp.
(MSFT) will release financial reports. (Read more about the day's
notable stocks in Movers & Shakers column:
http://www.marketwatch.com/story/comcast-gm-3m-visa-in-focus-thursday-2014-10-23.)
Other markets: In Asia overnight, stocks in Tokyo and Hong Kong
finished modestly lower. European stocks were higher in a choppy
trade. Gold futures (GCZ4) fell and oil prices (CLZ4) edged up.
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