U.S. stocks climbed Thursday, as investors bought the dip in stocks following a selloff a day earlier, underpinned by a Micron-led rise in tech as the chipmaker reported better-than-expected quarterly results.
By 13:54 ET (18:54 GMT), the Dow Jones Industrial Average was up 153 points, or 0.4%, S&P 500 rose 0.4%, higher and NASDAQ Composite climbed 0.7%.
All three averages are on course for strong gains in December as well as this year amid growing optimism that the Federal Reserve will authorise interest rate cuts in the new year.
Micron lifts chip stocks; Salesforce (NYSE:CRM) jumps on upgrade
Micron Technology (NASDAQ:MU), with the chipmaker's stock rising over 6% after forecasting quarterly revenue above market estimates on Wednesday, on signs of memory chip recovery in 2024 after one of the most significant downturns in years.
"Better than expected gross margin guidance and an even more confident tone on pricing in C2024 should keep MU moving higher and it remains one of our top ideas for '24," UBS said in a note.
Adding to the tech melt-up, Salesforce rose more than 2% after Morgan Stanley upgraded the software maker to outperform form equalweight, citing a favourable risk to reward.
Despite a solid and improving positioning for generative AI, Salesforce continues to trade at a discount to large cap software peers on a growth-adjusted GAAP earnings basis, presenting a "compelling risk-reward ahead," Morgan Stanley added.
Apple rises on report of Vision Pro ramp up
Apple Inc (NASDAQ:AAPL) was 0.5% higher as the tech giant is reportedly ramping up production of its vision pro mixed reality headset, which could be launched in February.
Warner Bros Discovery (NASDAQ:WBD) and Paramount Global have discussed a potential tie-up, according to reports, that would bring together two of the world's largest media companies.
Q3 GDP revised lower, manufacturing activity slows; key inflation report eyed
On the economic front, the final revision of economic growth, or Gross domestic product, for Q3 fell to 4.9% from prior estimate 5.2%, while initial jobless claims rose 2,000 to 205,000 in the week ending Dec. 16, missing expectations of 214,000.
The Philadelphia Fed said Thursday its manufacturing index rose to a reading of -10.5 from -5.9 in August as the contraction in manufacturing activity continued.
The economic reports come just a day ahead of the core Personal Consumption Expenditures price index, the Fed’s favorite measure of inflation, on Friday, which could show whether inflation has slowed enough for the Fed to begin easing policy next year.
(Investing.com)