U.S stocks up on earnings, Facebook soars 30%; Dow rises 0.09%

U.S. stocks posted modest gains on Thursday after investors bought and sold equities on second-quarter earnings.

Social network icon Facebook saw its share prices soar nearly 30% after earnings blew past expectations, prompting many brokerages to raise the price targets on the company.

At the close of U.S. trading, the Dow Jones Industrial Average finished up 0.09%, the S&P 500 index rose 0.26%, while the Nasdaq Composite index rose 0.71%.

Facebook shares soared by almost 30%, breaking past USD34 a share, about USD4 shy of its IPO price, after the company reported results that blew past expectations thanks to revenue stemming from mobile applications, according to an earnings statement.

Revenue increased by 53% to USD1.81 billion, beating market calls for USD1.62 billion. 
Mobile advertising revenue represented approximately 41% of advertising revenue for the second quarter of 2013, the company said.

Materials and utilities stocks rose as well, though industrial stocks watered down gains.
Investors bought and sold on earnings, though most were waiting until next week, when the July jobs report will publish and provide a new weather vane for markets.

The Labor Department said earlier that the number of individuals filing for initial jobless benefits last week increased by 7,000 to 343,000 compared with expectations for a gain of 4,000 to 340,000.

In a separate report, the Commerce Department said orders for durable goods rose by 4.2% in June, outpacing expectations for an increase of 1.3%. 

Durable goods for May were revised to a 5.2% gain from a previously reported 3.7% increase.

Core durable goods orders, which exclude volatile transportation items, were flat in June, missing expectations for a 0.5% increase.

Leading Dow Jones Industrial Average performers included Chevron, up 1.10%, Bank of America, up 0.88%, and Merck, up 0.84%.

The Dow Jones Industrial Average's worst performers included Microsoft, down 1.81%, Home Depot, down 1.59%, and Caterpillar, down 1.57%.

European indices, meanwhile, finished lower.

After the close of European trade, the EURO STOXX 50 fell 0.43%, France's CAC 40 fell 0.17%, while Germany's DAX 30 finished down 0.96%. Meanwhile, in the U.K. the FTSE 100 finished down 0.49%.

On Friday, the U.S. will release a revised Thomson Reuters/University of Michigan gauge on consumer sentiment.

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Forex - Dollar dips on disappointing weekly U.S. jobless claims

The dollar softened against most major currencies on Thursday after weekly jobless claims rose in the U.S. last week.

Disappointing or even lackluster U.S. indicators tend to dampen expectations that dollar-weakening monetary stimulus programs such as the Fed's monthly USD85 billion bond-buying program will end soon.

Federal Reserve officials have said they will pay careful attention to data before deciding on when to taper stimulus measures and let the economy stand on its own two feet, which should allow borrowing costs to rise and bolster the dollar down the road.

In U.S. trading on Thursday, EUR/USD was up 0.59% at 1.3278.

The Labor Department said earlier that the number of individuals filing for initial jobless benefits last week increased by 7,000 to 343,000 compared with expectations for a gain of 4,000 to 340,000.

The numbers weakened the dollar by keeping expectations alive the Federal Reserve will continue stimulating the economy, especially by keeping its monthly asset-purchase program in place.

Monetary stimulus programs weaken the dollar by keeping borrowing costs low across the economy.

In a separate report, the Commerce Department said orders for durable goods rose by 4.2% in June, outpacing expectations for an increase of 1.3%. 

Durable goods for May were revised to a 5.2% gain from a previously reported 3.7% increase.

Core durable goods orders, which exclude volatile transportation items, were flat in June, missing expectations for a 0.5% increase, which kept the greenback lower.

Meanwhile in Europe, data released earlier showed that the Ifo index of German business climate ticked up to 106.2 in July from 105.9 in June, better than expectations for a reading of 106.1, which bolstered the euro.

The greenback, meanwhile, was down against the pound, with GBP/USDtrading up 0.43% at 1.5381.

Data released earlier on Thursday showed that economic growth in the U.K. accelerated to 1.4% on a year-over-year basis in the second quarter, in line with expectations. 

The U.K. economy expanded 0.6% quarter on quarter after a 0.3% expansion in the first quarter.

The dollar was down against the yen, with USD/JPY down 0.93% at 99.33, and down against the Swiss franc, with USD/CHF trading down 0.78% at 0.9300.

The dollar was down against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.48% at 1.0263, AUD/USD up 0.85% at 0.9246 and NZD/USD trading up 1.87% at 0.8091.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.64% at 81.84.

On Friday, the U.S. will release a revised Thomson Reuters/University of Michigan gauge on consumer sentiment.

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Forex - GBP/USD gains on U.K. growth rates, soft U.S. jobs data

The pound moved higher against the dollar on Thursday after U.K. growth rates met expectations while U.S. jobless claims figures came in worse than expected.

In U.S. trading on Thursday, GBP/USD was trading at 1.5357, up 0.28%, up from a session low of 1.5265 and off from a high of 1.5386.

Cable was likely to find support at 1.5265, the earlier low, and resistance at 1.5392, Tuesday's high.

Data released earlier on Thursday showed that economic growth in the U.K. accelerated to 1.4% on a year-over-year basis in the second quarter, in line with expectations. 

The U.K. economy expanded 0.6% quarter on quarter after a 0.3% expansion in the first quarter.

The greenback, however, weakened on soft data out of the U.S. labor market.

The Labor Department said earlier that the number of individuals filing for initial jobless benefits last week increased by 7,000 to 343,000 compared with expectations for a gain of 4,000 to 340,000.

The numbers weakened the dollar by keeping expectations alive the Federal Reserve will continue stimulating the economy, especially by keeping its monthly USD85 billion bond-buying program in place.

Monetary stimulus programs weaken the dollar by keeping borrowing costs low across the economy.

In a separate report, the Commerce Department said orders for durable goods rose by 4.2% in June, outpacing expectations for an increase of 1.3%. 

Durable goods for May were revised to a 5.2% gain from a previously reported 3.7% increase.

Core durable goods orders, which exclude volatile transportation items, were flat in June, missing expectations for a 0.5% increase, which kept the greenback lower.

The pound, meanwhile, was down against the euro and down against the yen, with EUR/GBP up 0.06% at 0.8624 and GBP/JPY down 0.45% at 152.87.

On Friday, the U.S. will release a revised Thomson Reuters/University of Michigan gauge on consumer sentiment.

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Forex - EUR/USD gains on disappointing U.S. jobless claims

The euro moved higher against the dollar on Thursday after data revealed more Americans filed for unemployment assistance last week.

In U.S. trading on Thursday, EUR/USD was up 0.22% at 1.3229, up from a session low of 1.3166 and off from a high of 1.3240.

The pair was likely to find support at 1.3166, the earlier low, and resistance at 1.3256, Wednesday's high.

The Labor Department said earlier that the number of individuals filing for initial jobless benefits last week increased by 7,000 to 343,000 compared with expectations for a gain of 4,000 to 340,000.

The numbers weakened the dollar by keeping expectations alive the Federal Reserve will continue stimulating the economy, especially by keeping its monthly USD85 billion bond-buying program in place.

Monetary stimulus programs weaken the dollar by keeping borrowing costs low across the economy.

In a separate report, the Commerce Department said orders for durable goods rose by 4.2% in June, outpacing expectations for an increase of 1.3%. 

Durable goods for May were revised to a 5.2% gain from a previously reported 3.7% increase.

Core durable goods orders, which exclude volatile transportation items, were flat in June, missing expectations for a 0.5% increase, which kept the greenback lower.

Meanwhile in Europe, data released earlier showed that the Ifo index of German business climate ticked up to 106.2 in July from 105.9 in June, better than expectations for a reading of 106.1, which bolstered the euro.

The euro, meanwhile, was up against the pound and down against the yen, with EUR/GBP trading up 0.08% at 0.8624 and EUR/JPY trading down 0.46% at 131.75.

On Friday in the euro zone, Germany is to publish official data on retail sales and import prices.

The U.S. is to round up the week with revised data on consumer sentiment from the University of Michigan.

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Gold rises as U.S. jobless claims make unexpected gains

Gold prices rose on Thursday after official data in the U.S. revealed that more individuals sought out jobless assistance last week than expected, which weakened the dollar. 

Disappointing U.S. indicators tend to dampen expectations that dollar-weakening monetary stimulus programs such as the Fed's monthly USD85 billion bond-buying program will end soon.

Gold and the dollar tend to trade inversely with one another.

On the Comex division of the New York Mercantile Exchange, gold futures for August traded at USD1,328.35 during U.S. afternoon hours, up 0.67%.

The August contract settled down 1.14% at USD1,319.50 a troy ounce on Wednesday.

Gold futures were likely to find support at USD1,269.45 a troy ounce, the low from July 17, and resistance at USD1,347.85, Tuesday's high.

The Labor Department said earlier that the number of individuals filing for initial jobless benefits last week increased by 7,000 to 343,000 compared with expectations for a gain of 4,000 to 340,000.

The numbers weakened the dollar by keeping expectations alive the Federal Reserve will continue stimulating the economy, which was bullish for the yellow metal.

In a separate report, the Commerce Department said orders for durable goods rose by 4.2% in June, outpacing expectations for an increase of 1.3%. 

Durable goods for May were revised to a 5.2% gain from a previously reported 3.7% increase.

Core durable goods orders, which exclude volatile transportation items, were flat in June, missing expectations for a 0.5% increase, which supported gold prices.

Elsewhere on the Comex, silver for September delivery was up 0.76% at USD20.173 a troy ounce, while copper for September delivery was up 0.13% and trading at USD3.183 a pound.

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Forex - GBP/USD rangebound after mixed U.S. data

The pound was rangebound against the U.S. dollar on Thursday, erasing losses after the release of mixed U.S. economic reports fuelled fresh uncertainty over whether the Federal Reserve will soon begin tapering its stimulus program. 

GBP/USD pulled away from 1.5265, the pair's lowest since July 21, to hit 1.5321 during U.S. morning trade, easing up 0.04%. 

Cable was likely to find support at 1.5196, the low of July 19 and resistance at 1.5390, Wednesday's high. 

The Labor Department said the number of individuals filing for initial jobless benefits last week increased by 7,000 to a seasonally adjusted 343,000, compared to expectations for an increase of 6,000 to 340,000.

Separately, the Commerce Department said orders for long lasting manufactured goods rose by a seasonally adjusted 4.2% in June, compared to expectations for an increase of 1.3%. 

Durable goods for May were revised to a 5.2% gain from a previously reported 3.7% increase.

Core durable goods orders, which exclude volatile transportation items, were flat in June, compared to expectations for a 0.5% increase. 

The pound fell to session lows against the dollar and the euro earlier, despite official data showing that growth in the U.K. economy accelerated in line with expectations in the second quarter.

The Office of National Statistics said the U.K. economy expanded by 1.4% on a year-over-year basis in the second quarter, in line with expectations. The U.K. economy grew by 0.3% year-on-year in the first quarter.

The U.K. economy expanded 0.6% quarter on quarter, after a 0.3% expansion in the first quarter. 

The ONS said the service sector expanded by 0.6%, the manufacturing sector grew 0.4% and the construction sector grew by 0.9%. 

Sterling was lower against the euro with EUR/GBP adding 0.19%, to hit 0.8634. 

Also Thursday, data showed that the Ifo index of German business climate ticked up to 106.2 in July from 105.9 In June, slightly better than expectations for a reading of 106.1.

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Dollar broadly lower after U.S. durables, jobs reports

The dollar was broadly lower against the other major currencies on Thursday after data showed that U.S. jobless claims increased slightly last week and durable goods orders increased last month.

The Labor Department said the number of individuals filing for initial jobless benefits in last week increased by 7,000 to a seasonally adjusted 343,000, compared to expectations for an increase of 6,000 to 340,000.

The Commerce Department said orders for long lasting manufactured goods rose by a seasonally adjusted 4.2% in June, compared to expectations for an increase of 1.3%. 

Durable goods for May were revised to a 5.2% gain from a previously reported 3.7% increase.

Core durable goods orders, which exclude volatile transportation items, were flat in June, compared to expectations for a 0.5% increase. 

The dollar fell to session lows against the yen during European afternoon trade, with USD/JPY down 0.61% to 99.65.

The dollar was also lower against the euro, with EUR/USD rising 0.22% to 1.3228.

Earlier Thursday, data showed that the Ifo index of German business climate ticked up to 106.2 in July from 105.9 In June, slightly better than expectations for a reading of 106.1.

Elsewhere, the dollar was almost unchanged against the pound withGBP/USD dipping 0.01% to 1.5315.

Data released earlier on Thursday showed that economic growth in the U.K. accelerated to 1.4% on a year-over-year basis in the second quarter, in line with expectations. 

The U.K. economy expanded 0.6% quarter on quarter, after a 0.3% expansion in the first quarter. 

The dollar fell to session lows against the Swiss franc, with USD/CHFdown 0.41% to 0.9335. 

The greenback was mixed against its Australian, New Zealand and Canadian counterparts, with AUD/USD climbing 0.17% to 0.9182,NZD/USD jumping 1.33% to 0.8047 and USD/CAD falling 0.30% to 1.0280.

The Reserve Bank of New Zealand left its benchmark interest rate on hold at 2.5% on Thursday and indicated that it may hike rates in early 2014.

"Although removal of monetary stimulus will likely be needed in the future, we expect to keep the official cash rate unchanged through the end of the year," said Governor Graeme Wheeler.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.25% to 82.17.

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U.S. initial jobless claims rose by 7,000 to 343,000 last week

The number of people who filed for unemployment assistance in the U.S. rose more than expected last week, official data showed on Thursday. 

The Labor Department said the number of individuals filing for initial jobless benefits in the week ending July 20 increased by 7,000 to a seasonally adjusted 343,000, compared to expectations for an increase of 6,000 to 340,000.

Jobless claims for the preceding week were revised up to 336,000 from a previously reported 334,000.

The four-week moving average was 345,250, a decline of 1,250 from the previous week's revised average of 346,500

The monthly average is seen as a more accurate gauge of labor trends because it reduces volatility in the week-to-week data.

Following the release of the data, the U.S. dollar was lower against the euro, with EUR/USD up 0.18% to 1.3222.

Meanwhile, U.S. stock index futures were broadly lower. The Dow Jones Industrial Average futures indicated a decline of 0.40% at the open, S&P 500 futures pointed to a 0.10% increase, while the Nasdaq 100 futures indicated a decline of 0.16% at the open.

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US durable goods orders jump in June, core flat

U.S. durable goods orders rose more-than-expected in June, while core orders were flat, official data showed on Thursday

The Commerce Department said orders for long lasting manufactured goods rose by a seasonally adjusted 4.2% last month, compared to expectations for an increase of 1.3%. 

Durable goods for May were revised to a 5.2% gain from a previously reported 3.7% increase.

Core durable goods orders, which exclude volatile transportation items, were flat in June, compared to expectations for a 0.5% increase. 

Core durable goods orders for May were revised up to 1.0% from 0.5%.

Following the release of the data, the dollar was little changed against the euro, with EUR/USD inching up 0.02% to 1.3204.

Meanwhile, U.S. stock index futures were broadly lower The Dow Jones Industrial Average futures pointed to slide of 0.42% at the open, S&P 500 futures indicated a decline of 0.16, while the Nasdaq 100 futures signaled a gain of 0.09%. 

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Forex - EUR/USD slightly higher ahead of U.S. data

The euro was slightly higher against the dollar on Thursday as upbeat euro zone data buoyed the single currency and investors’ attention turned to U.S. data due for release later in the trading day.

EUR/USD hit 1.3237 during European afternoon trade, the session high; the pair subsequently consolidated at 1.3212, gaining 0.09%.

The pair was likely to find support at 1.3133, the low of July 22 and resistance at 1.3255, Wednesday’s high and a five-week high.

The euro briefly touched session highs against the dollar after data showed that the Ifo index of German business climate ticked up to 106.2 in July from 105.9 In June, better than expectations for a reading of 106.1.

Market participants were looking ahead to U.S. reports on initial jobless claims and durable goods orders later in the day for indications on when the Federal Reserve might start to unwind its asset purchase program.

The euro was also higher against the pound, with EUR/GBP rising 0.24% to 0.8638.

Sentiment on sterling remained lackluster after official data showed that growth in the U.K. economy accelerated in line with expectations in the second quarter.

The Office of National Statistics said the U.K. economy expanded by 1.4% on a year-over-year basis in the second quarter, in line with expectations. The U.K. economy grew by 0.3% year-on-year in the first quarter.

The U.K. economy expanded 0.6% quarter on quarter, after a 0.3% expansion in the first quarter. 

Elsewhere, the euro was lower against the yen, with EUR/JPY down 0.42% to 131.80.

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European stocks push lower despite positive data; Dax down 0.96%

European stocks pushed lower on Thursday, despite the release of positive German business climate and Spanish unemployment data as a flurry of mixed earnings reports weighed on european equities.

During European afternoon trade, the EURO STOXX 50 retreated 0.81%, France’s CAC 40 slid 0.74%, while Germany’s DAX 30 declined 0.96%. 

Data showed that the Ifo index of German business climate ticked up to 106.2 in July from 105.9 In June, slightly better than expectations for a reading of 106.1. 

A separate report showed that Spain's unemployment rate ticked down to 26.3% in the second quarter, from a reading of 27.2 in the previous quarter. Analysts had expected the unemployment rate to remain unchanged in the last quarter. 

Financial stocks turned broadly lower, as French lenders BNP Paribas and Societe Generale declined 0.18% and 1.49%, while Germany's Deutsche Bank slipped 0.14%. 

Among peripheral lenders, Spanish bank BBVA shed 0.45%, while Italy's Unicredit and Intesa Sanpaolo retreated 0.74% and 1.07% respectively. 

Among earnings, BASF plunged 4.28% after the chemical maker reported profit that missed projections and said meeting its targets looks difficult. 

Adding to losses, Michelin plummeted 3.21% after the largest tiremaker reported a 13% decline in first-half profit, as slumping auto markets in Europe weighed on demand. 

In London, commodity-heavy FTSE 100 tumbled 0.91%, weighed by losses in mining stocks, even as data showed that economic growth in the U.K. accelerated to 1.4% on a year-over-year basis in the second quarter, in line with expectations. 

Mining giants Rio Tinto and BHP Billiton plummeted 2% and 2.08% respectively, while rivals Anglo American and Fresnillo dove 3.48% and 4.86%. 

Meanwhile, financial stocks turned broadly lower. Shares in Lloyds Banking shed 0.38% and HSBC Holdings dropped 0.55%, the Royal Bank of Scotland and Barclays retreated 0.65% and 0.82%. 

Elsewhere, ARM Holdings sank 6.81%, erasing the previous day's gains after Sanford C. Bernstein said its valuation may drop in the second half. On Wednesday, the company reported second-quarter sales that beat estimates. 

In the U.S., equity markets pointed to a lower open. The Dow Jones Industrial Average futures pointed to a 0.52% drop, S&P 500 futures signaled a 0.64% decline, while the Nasdaq 100 futures indicated a 0.57% retreat. 

Later in the day, the U.S. was to produce data on initial jobless claims and durable goods orders.

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U.S. futures fall ahead of economic reports; Dow Jones down 0.52%

U.S. stock futures pointed to a lower open on Thursday, as investors eyed upcoming U.S. economic reports, after recent U.S. housing sector data added to expectations for a near-term end to the Federal Reserve's stimulus program. 

Ahead of the open, the Dow Jones Industrial Average futures pointed to a 0.52% drop, S&P 500 futures signaled a 0.64% decline, while the Nasdaq 100 futures indicated a 0.57% retreat. 

U.S. equities weakened after official data on Wednesday showed that U.S. new home sales jumped to a five-year high in June, boosting expectations that the Fed will start to scale back its bond buying program later this year.

The Commerce Department said U.S. new home sales jumped 8.3% to a seasonally adjusted annual rate of 497,000 units, the highest level since May 2008. 

In the tech sector, Dell was expected to remain in focus after founder Michael Dell and financial ally Silver Lake Management on Wednesday said they would raise their bid by a dime to USD13.75 per share if the company's special committee agreed to change the rules so that nonvoters wouldn’t count as opposing the deal. 

Dell shares dropped 0.50% in after-hour trade. 

Apple slid 0.34% in extended trading as investors locked in gains after shares surged over 5% on Wednesday. The tech giant reported quarterly results that topped estimates and announced that iPhone sales grew more than expected, helping to offset weak iPad sales. 

Elsewhere among earnings, Facebook said after the closing bell on Wednesday that surging demand for mobile advertising helped profit and revenue top analysts' estimates in the second quarter, sending shares up 17.20% in early trading. 

Qualcomm shares surged 1.97% pre-market, after the largest seller of semiconductors for mobile phones forecast fiscal fourth-quarter sales that may exceed analysts' estimates, helped by growing smartphone demand in emerging markets. 

Other stocks likely to be in focus included GM, 3M, Colgate-Palmolive, Amazon.com, Gilead Sciences, Starbucks, Zynga, all scheduled to post results later in the day. 

Across the Atlantic, European stock markets were sharply lower. The EURO STOXX 50 tumbled 0.99%, France’s CAC 40 dropped 0.91%, Germany's DAX plummeted 1.17%, while Britain's FTSE 100 retreated 1.07%. 

During the Asian trading session, Hong Kong's Hang Seng Index shed 0.31%, while Japan’s Nikkei 225 Index plummeted 1.35%. 

Later in the day, the U.S. was to produce data on initial jobless claims and durable goods orders.

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Dollar mixed as U.S. data awaited

The dollar was mixed against the other major currencies on Thursday, as investors awaited U.S. economic data later in the day for indications on when the Federal Reserve might start to unwind its asset purchase program.

During European late morning trade, the dollar fell to session lows against the yen, with USD/JPY down 0.40% to 99.86 as traders locked in profits following the dollar’s gains on Wednesday.

The dollar gained ground against the other major currencies on Wednesday after official data showed that U.S. new home sales jumped to a five-year high in June.

The dollar edged higher against the euro, with EUR/USD dipping 0.06% to 1.3192.

Earlier Thursday, data showed that the Ifo index of German business climate ticked up to 106.2 in July from 105.9 In June, slightly better than expectations for a reading of 106.1.

Elsewhere, the dollar was higher against the pound with GBP/USD down 0.22% to 1.5280.

Data released on Thursday showed that economic growth in the U.K. accelerated to 1.4% on a year-over-year basis in the second quarter, in line with expectations. The U.K. economy grew by 0.3% year-on-year in the first quarter.

The U.K. economy expanded 0.6% quarter on quarter, after a 0.3% expansion in the first quarter. 

The dollar edged higher against the Swiss franc, with USD/CHF inching up 0.07% to 0.9380. 

The greenback was mixed against its Australian, New Zealand and Canadian counterparts, with AUD/USD sliding 0.13% to 0.9157,NZD/USD jumping 0.93% to 0.8015 and USD/CAD slipping 0.08% to 1.0304.

The Reserve Bank of New Zealand left its benchmark interest rate on hold at 2.5% on Thursday and indicated that it may hike rates in early 2014.

 "Although removal of monetary stimulus will likely be needed in the future, we expect to keep the official cash rate unchanged through the end of the year," said Governor Graeme Wheeler.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, inched up 0.03% to 82.40. 

The U.S. was to produce official data on initial jobless claims and durable goods orders later Thursday.

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Forex - USD/CHF edges higher, U.S. data in focus

The U.S. dollar edged higher against the Swiss franc in cautious trade on Thursday, amid ongoing uncertainty over the future of the Federal Reserve's stimulus program after recent upbeat U.S. housing data lent support to the greenback. 

USD/CHF hit 0.9392 during European morning trade, the pair's highest since July 23; the pair subsequently consolidated at 0.9381, adding 0.07%. 

The pair was likely to find support at 0.9390, the low of July 22 and resistance at 0.9416, the high of July 21. 

The greenback remained supported after official data on Wednesday showed that U.S. new home sales jumped to a five-year high in June, boosting expectations that the Federal Reserve will start to scale back its bond buying program later this year.

The Commerce Department said U.S. new home sales jumped 8.3% to a seasonally adjusted annual rate of 497,000 units, the highest level since May 2008. 

The Swissie was steady against the euro with EUR/CHF dipping 0.02%, to hit 1.2371. 

Also Thursday, data showed that the Ifo index of German business climate ticked up to 106.2 in July from 105.9 In June, slightly better than expectations for a reading of 106.1. 

Later in the day, the U.S. was to produce data on initial jobless claims and durable goods orders.

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