US stocks end sharply higher on strong earnings

By Aysu Bicer

ANKARA (AA) - US stocks ended sharply higher Thursday as strong earnings from major companies offset gloomy US economic data.

US pharmaceutical firm Merck gained more than $3.2 billion in sales from its coronavirus pill during the first quarter of this year.

Mastercard's net revenue soared 24% to $5.2 billion and net income for the quarter rose 44% to $2.6 billion or $2.68 a share.

Meanwhile, US Treasury Secretary Janet Yellen warned Thursday about the fallout from the Russia-Ukraine war, saying it is likely that large economic shocks and disruptions will continue to challenge the economy.

The US economy unexpectedly contracted 1.4% year-on-year in the first quarter of 2022, the Commerce Department's first reading of the data showed Thursday.

The number of Americans filing first-time unemployment claims last week fell by 5,000 to 180,000

The Dow Jones Industrial Average climbed 614 points, or 1.8% to 33,916.

The S&P 500 gained 103.5 points or 2.5% to 4,287, while the Nasdaq Composite rose 382 points, or 3%, to 12,871.

The yield on 10-year Treasuries was little changed at 2.84%, while the dollar index was up 0.6%

The VIX volatility index, known as the fear index, was down 5.09% at 30.

Gold futures rose 0.4% to $1,896.60 an ounce while silver fell 1.08% to 23.25%.

Global benchmark Brent crude was trading at $107.62 a barrel, up 2.30%, while US benchmark West Texas Intermediate (WTI) crude was at $105.20, gaining 3.18%.