Dow jumps more than 300 points after better-than-expected earnings reports

U.S. stocks rose Thursday after better-than-expected earnings reports from Bank of America and other major companies.

The Dow Jones Industrial Average jumped about 330 points, or 1%. The S&P 500 gained 0.9% and the Nasdaq Composite added 0.9%.

Third-quarter earnings season rolled on Wednesday with several big banks and Dow members reporting financial results before the bell.

Bank of America and Morgan Stanley each saw their shares rise in the premarket after beating earnings expectations. Wells Fargo and Citigroup shares both ticked lower despite earnings beats.

Dow constituents UnitedHealth and Walgreens Boots Alliance also gained after the companies’ quarterly results topped estimates.

A lower-than-anticipated number of weekly jobless claims added to the positive market sentiment. Initial unemployment insurance claims last week totaled 293,000 – the first time the tally fell below the 300,000 level during the pandemic-era.

September’s producer price index, which measures wholesale prices, was lighter than expected, also helping sentiment.

Stocks linked to the economic recovery rose in the premarket as well.

Shares of Carnival and MGM Resorts gained. Energy shares including Diamondback Energy and Occidental Petroleum moved higher as oil prices jumped on increased demand. UPS rose after an upgrade from Stifel, which cited upcoming holiday demand.

The moves came as Covid cases in the U.S. continued to trend lower. The 7-day moving average of cases fell to 86,181, down from an average above 161,000 cases at the peak of this latest wave in early September, according to the latest CDC figures.