S&P hits twomonth high

Continued buying interest may be generated by expectations of further stimulus following yesterday’s comments from European Central Bank chief Mario Draghi and today’s news that China’s central bank unexpectedly lowered interest rates.

The Dow Jones Industrial Average closed up 1.87 per cent to 17,489.

The S&P 500 gained 1.66 per cent to 2,052 and the Nasdaq finished the session 1.65 per cent higher at 4,920.

Microsoft’s 3 percent rise ahead of its results on Thursday provided the biggest boost to the S&P 500 and the Nasdaq. On the Nasdaq, 1,949 issues rose and 634 fell.

In Europe, the pan-European FTSEurofirst 300 index ended up 2.1 percent, while the euro zone’s blue-chip Euro STOXX 50 index climbed 2.5 percent.

Dow Chemicals rose 3.2 percent to $49.00 premarket after its results. The average move for the stock the day after its report in the last eight quarters was 4.4 percent, up or down.

Among companies delivering better than expected reports, McDonald’s surged 8.1% to a fresh all-time high – and added 50-plus points to the Dow – and Texas Instruments spiked 11.9% after both beat their respective estimates. The stock added $5.99 to $57.89.

Stocks moved sharply higher over the course of the trading day on Thursday, as traders reacted to several positive catalysts.

Shares of Proofpoint Inc (NASDAQ: PFPT ) got a boost, shooting up 13 percent to $62.47 on upbeat Q3 results. Other hospital operators Lifepoint, HCA Holdings and Tenet Healthcare also fell 5 to 8.5 percent.

Shares of Community Health Systems (NYSE: CYH ) were down 34 percent to $26.63 after the company reported weak preliminary operating results for the third quarter. However, analysts were expecting earnings of $1.28 per share on revenue of $6.41 billion.

CREDIT CRIMPED: Shares in American Express tumbled 5.8 percent a day after the credit card issuer reported a 16 percent drop in profits, missing analysts’ estimates.

Cassidy said the biggest factor for investors scrutinizing the reports would be revenue, which has been hurt by a slowing global economy and a stronger dollar. It also cut its full-year forecast.

In commodities trading, crude oil futures for December delivery are slipping $0.08 to $45.30 a barrel after rising $0.18 to $45.38 a barrel on Thursday.

SOLD: The National Association of Realtors said that sales of previously occupied homes jumped 4.7 percent last month to a seasonally adjusted annual rate of 5.55 million.

EUROPEAN MARKETS: Germany’s DAX rose 2.5 percent, while the CAC-40 in France rose 2.3 percent.

The Consumer Board’s Leading Index declined 0.20 percent in September, versus economists’ expectations for a 0.00 percent growth. Elsewhere in Asia stock markets closed mostly lower.

Japan’s Nikkei 225 fell 0.6 percent and South Korea’s Kospi dropped 1 percent. Hong Kong’s Hang Seng Index fell 0.6 per cent after reopening following a holiday on Wednesday.

Eye on company results on the floor of the New York Stock Exchange October 22, 2015.

Biotech stocks were shaken in September when USA presidential candidate Hillary Clinton first tweeted concerns about drug prices and the selling spread to other areas of the healthcare sector.