Nasdaq closes 1.7% higher

U.S stocks closed the session higher Thursday as investors digested another busy session for corporate earnings and took in the first estimate of economic growth for the fourth quarter.

The Nasdaq Composite jumped 1.76% to settle at 11,512.41. The Dow Jones Industrial Average rose 205.57 points, or 0.61%, to end at 33,949.41, while the S&P 500 gained 1.10% to close at 4,060.43.

GDP data released Thursday showed the economy expand at an annualized rate of 2.9% during the fourth quarter, the Commerce Department said. That’s above the 2.8% Dow Jones estimate, but represents a slight cooldown from the third-quarter reading.

Durable goods orders over the final month rose 5.2% for the best annualized gain since the summer of 2020.

Tesla reported record profits for the fourth quarter and the full year, but its profit margins were tighter due to higher costs, recent price cuts, and sales in the quarter that were weaker than hoped. The leading electric vehicle maker posted adjusted earnings of $1.19 per share in the quarter, up from 85 cents a share a year earlier, and its previous record of $1.07 a share in the first quarter.

International Business Machines (IBM) shares fell 4.5% after its muted fourth quarter earnings while adding its name to the list of big tech companies slashing jobs in divisions around the world.

Benchmark 10-year Treasury note yields were modestly higher at 3.498% in New York trading.

The February gold contract was down US$12.60 at US$1,930 an ounce and the March crude contract was up 86 cents at US$81.01 per barrel.