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Facebook achieved 50 percent higher revenue than last year

On Wall Street, the S&P 500 and Dow Jones indices slightly rose on Thursday, following anemic quarterly business results from several companies, while the larger increase in the Nasdaq index is attributed to a strong jump in Facebook’s stock price.

The Dow Jones strengthened by 13 points, or 0.09 percent, to 15,555 points, while the S&P 500 rose by 0.26 percent, to 1,690 points, and the Nasdaq index by 0.71 percent, to 3,605 points. The rise of the Nasdaq is due to a jump in Facebook’s stock price of over 30 percent, after the social network reported a revenue increase in the second quarter of over 50 percent compared to the same period last year.

On the other hand, weaker-than-expected business results from several industrial giants, such as Caterpillar, did not allow for a stronger rise in the S&P 500 index. So far, about 47 percent of companies in the S&P 500 index have reported their business results, with 68 percent exceeding analysts’ expectations regarding earnings, and 56 percent regarding revenue.

Although the results of most companies exceed analysts’ estimates, stock prices are failing to rise significantly because expectations are very low.

“The results really do not surprise anyone. The corporate sector is quite strong, so the earnings of companies are decent. The market trend is upward, unless there is some very bad news,” says Brian Gendreau, a strategist at Cetera Financial Group.

From the U.S. macroeconomic scene, unclear signals arrived yesterday. The number of unemployment claims rose slightly more than expected last week, indicating that the labor market situation is not very bright.

On the other hand, new orders for durable goods rose by 4.2 percent in June, significantly higher than the expected 1.3 percent, indicating strength in the industrial sector.

On European exchanges, however, stock prices fell yesterday. The London FTSE index weakened by 0.49 percent, to 6,587 points, while the Frankfurt DAX slid by 0.96 percent, to 8,298 points, and the Paris CAC by 0.17 percent, to 3,956 points.