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Stocks Rise Sharply Facebook Ignites a Nasdaq Rally

Here Are 3 Hot Things to Know About Stocks Right Now

  • The Dow Jones Industrial Average traded higher for a second straight day, after closing higher Wednesday and shaking a five-session losing streak. 
  • Following Wednesday's session, the Dow has declined 2.57% for the year, and the S&P 500 has fallen 1.28%.
  • Shares of Facebook Inc. rose 9.6% on Thursday after the social media giant posted earnings that beat Wall Street forecasts.

Wall Street Overview

Stocks rose sharply on Thursday, April 26, as investors waded through corporate earnings season, including a blowout quarter from Facebook Inc. (FB) .

The Dow Jones Industrial Average  was up 193 points, or 0.8%, to 24,277. Visa Inc. (V) was the best performer on the blue-chip index. The S&P 500  rose 0.83% and the Nasdaq   jumped 1.48% as tech shares, such as Microsoft Corp. (MSFT) and Intel Corp. (INTC) , followed Facebook higher.

Facebook was rising 9.6% on Thursday after the social media giant posted first-quarter earnings and revenue that beat analysts' expectations.

GAAP earnings in the quarter were $1.69 a share, compared to estimates of $1.35, and revenue of $11.96 billion came in above estimates of $11.4 billion.

Ahead of the earnings report, analysts had cited advertising revenue and user engagement as key concerns following the Cambridge Analytica data scandal. But Facebook reported an average of 1.45 billion daily active users during March 2018, an increase of 13% year over year. Advertising revenue was about $11.8 billion, compared to a consensus estimate of $11.3 billion.

Facebook is a holding in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio.

"Though we have scaled down our position because we fear the possible repercussions related to a second scandal like Cambridge Analytica, it is encouraging to see the market regain appreciation for the stock after what has been a turbulent month for the company," said Cramer and the AAP team. "Revenue trends remain strong, the company is better monetizing its steadily growing user base, and initiatives in augmented realty/virtual reality and artificial intelligence are in place to keep users engaged for the long-term."

PepsiCo Inc. (PEP) reported first-quarter adjusted earnings of 96 cents a share, beating forecasts by 3 cents. Revenue in the quarter was $12.56 billion, which also topped forecasts of $12.38 billion. The stock was up 2%.

General Motors Co. (GM)  posted a drop of 60% in first-quarter net income but per-share profit of $1.43 a share easily topped estimates of $1.24. The stock declined 2%.

Ford Motor Co. (F) rose 2.1% on Thursday after the automaker posted first-quarter earnings that beat analysts' estimates, and said it would shed most of its North American car lineup in a cost-cutting move as customers have shifted their preferences to pickup trucks and crossovers.

Advanced Micro Devices Inc. (AMD)  jumped 12.5% after the U.S. chipmaker beat analysts' forecasts for first-quarter earnings and issued a robust sales outlook despite increasing concerns over demand in the global semiconductor industry.

Qualcomm Inc. (QCOM)  shares rose 0.3% after the chipmaker's quarterly earnings and sales topped Wall Street estimates but its third-quarter guidance came in below forecasts.

United Parcel Service Inc. (UPS) rose 3.2% on Thursday, after the shipping company posted better-than-expected first-quarter revenue even as winter weather costs weighed on the U.S. segment's operating results.

Shares of Chipotle Mexican Grill Inc. (CMG)  jumped 23.5% on Thursday after the restaurant chain reported first-quarter earnings that topped analysts' expectations, and said same-store sales during the period rose 2.2%.

Earnings are expected after the closing bell Thursday from Amazon.com Inc. (AMZN) , Microsoft , Intel and Starbucks Corp. (SBUX) .

Amazon, Microsoft and PepsiCo are holdings in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells the stocks? Learn more now.

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