WASHINGTON (dpa-AFX) - Stocks moved sharply higher in early trading on
Thursday but have regained ground over the course of the session. While the
major averages remain firmly in negative territory, they have climbed well off
their worst levels of the day.

After plunging by more than 700 points early in the session, the Dow is down
344.01 points or 0.9 percent at 38,116.91. The Nasdaq is down 99.80 points or
0.6 percent at 15,612.95 and the S&P 500 is down 21.98 points or 0.4 percent at
5,049.65.

A negative reaction to earnings news from Meta Platforms (META) contributed to
the early sell-off on Wall Street, with the Facebook parent plunging by 10.1
percent.

Meta Platforms reported first quarter results that beat estimates on both the
top and bottom lines but provided disappointing second quarter revenue guidance.

Tech giant IBM Corp. (IBM) also came under pressure after reporting weaker than
expected first quarter revenues. IBM also announced a deal to acquire HashiCorp
(HCP) for $35 per share in cash, representing an enterprise value of $6.4
billion.

On the other hand, fellow Dow component Merck (MRK) has moved notably higher
after reporting first quarter results that exceeded analyst estimates.

The early sell-off on Wall Street also came after Commerce Department released a
report showing the U.S. economy grew by much less than expected in the first
quarter of 2024.

The Commerce Department said gross domestic product increased by 1.6 percent in
the first quarter after surging by 3.4 percent in the fourth quarter of 2023.
Economists had expected GDP to jump by 2.5 percent.

Meanwhile, the Commerce Department said the personal consumption expenditures
price index surged 3.4 percent in the first quarter after advancing by 1.8
percent in the fourth quarter.

Excluding food and energy prices, the PCE price index spiked 3.7 percent in the
first quarter after jumping by 2.0 percent in the fourth quarter.

'The Fed wants to see inflation start coming down in a persistent manner, but
the market wants to see economic growth and corporate profits increasing, so if
neither are headed in the right direction then that's going to be bad news for
markets,' said Chris Zaccarelli, Chief Investment Officer for Independent
Advisor Alliance.

Selling pressure has waned over the course of the session, however, inspiring
some traders to pick up stocks at relatively reduced levels.

Sector News

Despite the recovery attempt by the broader markets, telecom stocks continue to
see substantial weakness on the day, with the NYSE Arca North American Telecom
Index plunging by 2.9 percent.

Significant weakness also remains visible among software stocks, as reflected by
the 1.8 percent loss being posted by the Dow Jones U.S. Software Index.

Airline, biotechnology and banking stocks also continue to see considerable
weakness, although selling pressure has waned from earlier in the session.

Meanwhile, gold stocks have moved sharply higher on the day, resulting in a 4.5
percent spike by the NYSE Arca Gold Bugs Index.

Notable strength has also emerged among semiconductor stocks, driving the
Philadelphia Semiconductor Index up by 2.2 percent.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region turned in a
mixed performance during trading on Thursday. Japan's Nikkei 225 Index plunged
by 2.2 percent, while Hong Kong's Hang Seng Index climbed by 0.5 percent.

The major European markets also ended the day mixed. While the U.K.'s FTSE 100
Index rose by 0.5 percent, the French CAC 40 Index slid by 0.9 percent and the
German DAX Index slumped by 1.0 percent.

In the bond market, treasuries have climbed off their worst levels but remain
firmly negative. As a result, the yield on the benchmark ten-year note, which
moves opposite of its price, is up by 5.0 basis points at 4.702 percent.



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