Stocks bounced back on Thursday following Wednesday’s precipitous drop — a fall that marked the worst single-day losses on Wall Street since June.
Thursday’s rebound didn’t recoup all of those losses, but the bullishness also had some real good news to justify it: Third-quarter U.S. gross domestic product rose 7.4% from the second quarter, which translated to a record-setting 33.1% annualized clip.
That was meaningfully better than the 30.2% annualized growth analysts expected. Initial jobless claims also fell more quickly than expected last week, coming in at 751,000. It was the lowest weekly rate in seven months.
The Dow Jones Industrial Average rose 139 points, or 0.5%, to finish at 26,659.
Pinterest soars. Although Friday’s Wall Street moves will be dominated by the spate of Big Tech earnings that came late Thursday, one of the less visible social media companies, Pinterest (ticker: PINS), seized the spotlight in Thursday trading, with shares rocketing 27% higher.
Following the trend that Snap ( SNAP) set to start the earnings season, Pinterest reported huge advertiser growth in the third quarter. Revenue soared 58% year over year and adjusted earnings per share was 13 cents for the period, quadruple what analysts had expected.
Advertisers are flocking to where consumers are: online. And analysts view Pinterest’s role in the e-commerce marketplace to still be in its early innings.
EBay leaves something to be desired. Merely being in the digital commerce space isn’t enough to guarantee shareholder success, as eBay ( EBAY) demonstrated on Thursday. Although revenue last quarter rose 25%, the outlook for the holiday quarter isn’t good. The company sees revenue falling 4% year over year, and earnings guidance also fell short of expectations.
That forward guidance made eBay one of the worst performers in the S&P 500 on Thursday, with shares falling 7.5%.
The online auction site’s guidance also puts it in stark contrast to Amazon.com ( AMZN), which, despite being much larger, expects revenue growth between 28% and 38% in the fourth quarter.
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