On Thursday, the Nasdaq?Composite (COMP) had the honor of the market’s top-performing index as it rose?71.69 points (1.8%), to 4,123.13. This represented its greatest single-day gain since Oct 10, 2013.?
Contributing to Nasdaq’s jump was Facebook’s (FB) quarterly earnings report. The company announced its numbers after Wednesday’s close. They exceeded the Street’s estimates with a 63 percent revenue increase.
On Thursday, Facebook closed at $61.05, up 7.55 (14.10%).?
With its rise, the other social media stocks followed suit with Twitter (TWTR) shares up?6.8%.; LinkedIn Corp (LNKD) jumped?4% and Groupon Inc (GRPN) increased?4.3%.
Options traders also liked Facebook as it was the most actively traded option on Thursday with its 925,026 contracts (66.6% call, 33.4% puts), according to Trade Alert.
In other positive news, the S&P 500 (SPX)?closed up 20 points (1.1%) to 1,794.19 and the?Dow Jones Industrial Average (DJIA)?was up 109 points (0.7%) to 15,848.61. The VIX closed at 17.29, down 0.06 (0.35%).
With Friday as the month-end for January, it’s poised to close out as a weak start to this new year. This is seen as a barometer of the year to come or its other name, the January effect.?
To date, the S&P 500 is off 2.93 and since 1929, the market has gone in the first month’s?direction 80 percent of the time (a positive finish) and 60 percent in a negative range, reported CNBC.
In a more current perspective, over the last?35 years, the S&P 500 had gone January’s way 25 times (71 percent of the time or 83 percent for the Dow, and 74 percent for the Nasdaq).?
Will history repeat itself?
Here’s what’s on tap for Friday’s numbers:
- Personal income at 8:30 a.m. (ET)
- Consumer sentiment at 9:55 a.m. (ET)
- Housing vacancies at at 10 a.m. (ET)
- Earnings reports include: Aon,?Autoliv, Booz Allen Hamilton,?Brookfield Office Properties, Chevron,?Dominion, Honda,?Lear Legg Mason,?MasterCard,?Mattel, Mead Johnson,?National Oilwell, Paccar,?Tyco,?Tyson Foods and Weyerhaeuser?