Mid-Morning Market Update: Markets Open Higher; GM Profit Beats Estimates

Following the market opening Thursday, the Dow traded up 1.37 percent to 16,687.12 while the NASDAQ surged 1.37 percent to 4,442.87. The S&P also rose, gaining 1.21 percent to 1,950.35.

Leading and Lagging Sectors

In trading on Thursday, industrials shares were relative leaders, up on the day by about 1.43 percent. Meanwhile, top gainers in the sector included CoreLogic CLGX, up 9 percent, and ITT Educational Services ESI, up 9 percent.

Telecommunications services shares fell by 0.26 percent on Thursday. Top losers in the sector included AT&T T, down 2.2 percent, and Rogers Communications RCI, off 1.9 percent.

Top Headline

General Motors Co GM reported upbeat earnings for the third quarter.

The Detroit, Michigan-based company posted quarterly net income of $1.38 billion, or $0.81 per share, compared to $698 million, or $0.45 per share, in the year-ago period. Excluding one-time costs, GM earned $0.97 per share.

Its revenue gained 2% to $39.25 billion. However, analysts were expecting a profit of $0.95 per share on revenue of $39.8 billion.

Equities Trading UP

Brookfield Residential Properties BRP shares shot up 21.51 percent to $23.10 after Brookfield Asset Management BAM proposed to acquire around 30% of the company not currently owned for $23 per share.

Shares of Infinera INFN got a boost, shooting up 21.96 percent to $12.94 on stronger-than-expected quarterly results.

Tractor Supply Company TSCO shares were also up, gaining 15.82 percent to $71.00 on upbeat quarterly results. Morgan Stanley raised the price target on the stock from $65.00 to $72.00.

Equities Trading DOWN

Shares of IPC The Hospitalist Company IPCM were down 19.15 percent to $38.03 after the company reported downbeat Q3 results and lowered its FY14 forecast.

Proto Labs PRLB shares tumbled 17.11 percent to $57.50 on weaker-than-expected Q3 results.

Yelp YELP was down, falling 14.99 percent to $59.70 after the company reported upbeat results for the third quarter, but issued a weak Q4 outlook.

Commodities

In commodity news, oil traded up 0.91 percent to $81.25, while gold traded down 0.84 percent to $1,235.00.

Silver traded down 0.27 percent Thursday to $17.19, while copper rose 0.43 percent to $3.03.

Euro zone

European shares were mostly higher today. The eurozone’s STOXX 600 rose 0.07 percent, the Spanish Ibex Index climbed 0.12 percent, while Italy’s FTSE MIB Index jumped 0.08 percent. Meanwhile, the German DAX climbed 0.39 percent and the French CAC 40 jumped 0.68 percent while UK shares dropped 0.11 percent.

Economics

US jobless claims increased by 17,000 to 283,000 in the week ended Oct. 18. However, economists were estimating claims to rise to 285,000 in the week.

The Chicago Fed National Activity Index rose to 0.47 in September, versus economists’ estimates of 0.15.

Home prices increased 0.5% in August, versus a 0.2% rise in July, according to the Federal Housing Finance Agency. US home prices gained 4.8% y/y in August.

The flash reading of Markit manufacturing PMI dropped fell to a reading of 56.2 in October, versus 57.5 in September.

The Conference Board's index of leading indicators increased 0.8% in September.

The Treasury is set to auction 3-and 6-month bills. The Treasury will also auction 2-year, 5-year and 7-year notes.

Data on money supply will be released at 4:30 p.m. ET.