MarketView for August 8

Summary

The major equity indexes moved higher on Thursday in a somewhat volatile day thereby snapping a three-day losing skid as a rally in Microsoft helped lift the technology sector. The three major U.S. stock indexes shook off early losses as Microsoft climbed. Microsoft ended the day up 2.6 percent to close at $32.89 in heavy volume.

According to a report released by the Labor Department on Thursday, weekly jobless claims rose less than expected to 333,000 in the latest week, while the four-week average fell to 335,500, its lowest level since before the recession in 2007 through 2009.

Shares of Tesla Motors rose 14.3 percent to $153.48 a day after the electric car maker posted an unexpected quarterly profit. The stock has been a major momentum favorite this year, up almost 350 percent in 2013.

Stocks had inched lower much of this week, pulling back from last week's record levels, on concerns that the Federal Reserve will start to reduce its stimulus efforts this year as the economy recovers. Gains in equities have been closely linked to the Fed's simulative policy, and many investors are worried that economic growth may stall without the Fed's intervention.

In the latest comments from a Fed official, Richard Fisher, president of the Federal Reserve Bank of Dallas, reiterated that the central bank will probably begin cutting back on its massive bond-buying stimulus next month, as long as economic data continues to improve.

Groupon ended the day up 21.6 percent to close at $10.60. Late Wednesday, the online coupon company reported revenue that exceeded expectations and named its co-founder as chief executive.

JPMorgan Chase was among the Dow's worst performers. The bank giant’s shares fell 0.9 percent to $54.83. JPMorgan Chase is the largest domestic bank in terms of assets, and it now faces a criminal probe by the Justice Department over sales of mortgage-backed securities.

Orbitz Worldwide, an online travel agency, reported higher-than-expected quarterly earnings as it sold more hotel and vacation packages, and forecast full-year revenue above Street expectations. Orbitz shares rose 36.7 percent to $12.62.

After the closing bell, Priceline.com shares rose 5.1 percent to $981.46 after the online travel agency said quarterly profit rose on improved hotel and car-rental reservations. The stock had ended regular trading at $933.75, up 0.7 percent ahead of its earnings.

Volume was once again light, with about 5.81 billion shares traded on the New York Stock Exchange, the NYSE MKT and the Nasdaq, below the daily average of 6.35 billion. Volume has yet to climb above 6 billion for any trading day this week.

Of the 442 companies in the S&P 500 that had reported earnings through Thursday morning, Thomson Reuters data showed that 67 percent topped analysts' expectations, matching the beat rate over the past four quarters. In terms of revenue, 53.6 percent exceeded estimates, more than the 48 percent rate over the past four quarters, but below the 61 percent average since 2002.