Dow Moving Sharply Higher, Nasdaq Extending Pullback On Meta Slump

Stocks have seen considerable volatility in morning trading on Thursday, extending the roller coaster ride seen over the course of the previous session.

While the Dow has shown a strong move to the upside, reaching its best intraday level in well over a month, the S&P 500 and the Nasdaq have been bouncing back and forth across the unchanged line.

Currently, the major averages are turning in a mixed performance. The Dow is up 451.88 points or 1.4 percent at 32,290.99 and the S&P 500 is up 11.00 points or 0.3 percent at 3,841.60, but the Nasdaq is down 55.57 points or 0.5 percent at 10,915.42.

The rally by the Dow partly reflects a strong upward move by shares of Caterpillar (CAT), with the construction equipment maker surging by 10.2 percent.

Caterpillar (CAT) is spiking after reporting third quarter results that beat analyst estimates on both the top and bottom lines.

Dow components Honeywell (HON), McDonald’s (MCD) and Merck (MRK) have also move notably higher after reporting better than expected third quarter earnings.

The blue chip index has also benefited from a positive reaction to a report from the Commerce Department showing U.S. economic activity rebounded by slightly more than expected in the third quarter following two straight quarters of contraction.

The report said real gross domestic product shot up by 2.6 percent in the third quarter following a 0.6 percent drop in the second quarter and a 1.6 percent slump in the first quarter. Economists had expected GDP to jump by 2.4 percent.

The data has offset recent concerns about an impending recession but could also derail recent optimism about the Federal Reserve slowing the pace of interest rate hikes.

Meanwhile, a steep drop by Meta Platforms (META) is weighing on the tech-heavy Nasdaq, with the Facebook parent plunging by 22.5 percent.

The sharp decline by shares of Meta comes after the company reported weaker than expected third quarter earnings and provided disappointing guidance.

Airline stocks have moved sharply higher in morning trading, with the NYSE Arca Airline Index soaring by 3.2 percent to a one-month intraday high

A notable increase by the price of crude oil has also contributed to considerable strength among energy stocks.

With crude for December delivery jumping $1.28 to $89.19 a barrel, the Philadelphia Oil Service Index is up by 2.4 percent and the NYSE Arca Oil Index is up by 2.0 percent.

Brokerage stocks are also turning in a strong performance on the day, driving the NYSE Arca Broker/Dealer Index up by 2.1 percent to its best intraday level in well over a month.

Utilities, housing and telecom stocks are also seeing notable strength, while biotechnology and steel stocks have shown significant moves to the downside.

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Thursday. Japan’s Nikkei 225 Index dipped by 0.3 percent, while Hong Kong’s Hang Seng Index advanced by 0.7 percent.

The major European markets have also turned mixed on the day. While the French CAC 40 Index is down by 0.3 percent, the German DAX Index and the U.K.’s FTSE 100 Index are both up by 0.5 percent.

In the bond market, treasuries have moved to the upside, extending the recovery seen over the past few sessions. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 5.9 basis points at 3.956 percent.