Thanks to better-than-expected corporate earnings and strong data out of China, markets are continuing their rebound Wednesday after a week of losses.
As of 10:27 a.m. ET, the Dow Jones Industrial Average was up 103.15 points, or 0.63 percent to 16365.71, while the S&P 500 rose 13.2 points, or 0.73 percent to 1856. The Nasdaq Composite increased by 37.1 points, or 0.92 percent to 4071.
China, the world’s second-biggest economy, grew at an annual pace of 7.4 percent in the first quarter, barely beating out Wall Street’s estimates of 7.3 percent. Still, economists are cautious amid prior fears the country was slowing down to a disastrous level.
“We maintain our view that GDP growth is on a down-trend and we continue to expect it to slow to 7.1% in (the second quarter),” wrote analysts at Japan-based Nomura in an email to clients.
“We believe the government will not announce any new easing measures in April as it waits to see how the economy responds to the current fiscal easing measures.”
Meanwhile, in corporate news, Bank of America posted a first-quarter loss on a $6 billion litigation expense as both the nation’s No. 1 (JPMorgan) and No. 2 U.S. banks continue to battle with lawsuits from federal regulators. Yahoo (YHOO) and Intel shares were up after stronger-than-expected quarterly earnings.
Also, the Commerce Department reported Wednesday that — despite better weather — new housing starts in the U.S. rose less than expected in the prior month.