Dow futures jump more than 300 points after better-than-expected GDP report

Futures linked to the Dow Jones industrial average gained on Thursday after the economy grew at a faster than expected pace in the third quarter.

Dow Jones Industrial Average futures rose 345 points, or 1.1%. S&P 500 futures added 0.4%. Nasdaq 100 futures were down 0.1%.

US GDP grew at an annualized rate of 2.6% for the period, versus a Dow Jones estimate of 2.3%. The report, the first quarter of positive growth for 2022, eased investor worries about a recession.

But the tech sector continued its recent woes, which weighed on the Nasdaq. Shares of Facebook’s parent company fell 20% in premarket trading on weak fourth-quarter guidance and disappointing third-quarter results. The company also said it will lose even more money next year building the Metaverse. The report led several analysts to downgrade the stock.

Traders also pored over earnings reports from other companies. ServiceNow jumped more than 12% after a beating in earnings. Ford Motor, meanwhile, fell 2% after the company released its latest results.

Stocks are coming off a mixed session, with the S&P 500 and Nasdaq Composite falling for the first time in four days on Wednesday, while the Dow Jones ended the day up slightly.

For the week, all major averages remain in positive territory, with the Dow and S&P up more than 2% and the Nasdaq up around 1%. The Dow Jones is on pace for its fourth consecutive positive week since ending its five-week streak in November 2021.

“Investors are still struggling to find direction and want clarity around earnings and what the Fed will do going forward,” said Adam Sarhan, CEO of 50 Park Investments. “Remember the market is a forward-looking mechanism and earnings reports tell us what has happened in the past. Investors want clarity and certainty. Right now we still have a lot of uncertainty on many levels.”

Shares of Comcast and McDonald’s traded up 8% and 2.9% respectively, following earnings reports that beat expectations before the bell. Cigarette company Altria Group fell 2.4% after missing earnings-per-share and revenue expectations. Big tech earnings continue Thursday with results from Amazon and Apple.