The Dow Jones Industrial Average gained 332 points as markets rose for the second consecutive day after strong corporate earnings overshadowed a contracting GDP. File Photo by John Angelillo/UPI | License Photo
July 28 (UPI) -- U.S. markets climbed for a second consecutive day as investors shook off a second straight quarter of economic contraction.
The Dow Jones Industrial Average gained 332.04 points, or 1.03%, while the S&P 500 climbed 1.2% and the Nasdaq Composite closed the day up 1.08%.
The Commerce Department shared its second-quarter gross domestic product report, showing the U.S. economic output contracted 0.9% between April and July.
President Joe Biden struck an optimistic tone stating the economic decline should not be surprising as the Federal Reserve takes steps to counter inflation.
"Even as we face historic global challenges, we are on the right path and we will come through this transition stronger and more secure," he said.
Stocks also remained strong Thursday despite the news, on the strength of strong corporate earnings.
Etsy stock gained 9.86%, Ford rose 6.3% and Honeywell International climbed 3.69% after all three companies posted better than expected earnings.
Conversely, shares of Comcast fell 9.13% after it failed to add broadband subscribers and Facebook parent, Meta, dropped 5.22% after missing earnings expectations.
Amazon reported earnings after the bell posting $121.2 billion in revenue, which surpassed analysts' expectations of $119.53 billion.
Shares of the company were up 1.08% in regular trading in advance of the report's release and surged more than 12% after hours.
Apple also posted an earnings beat after hours with earnings per share coming in at $1.20 compared to an estimated $1.16, falling 8% year-over-year. Revenue also beat expectations at $83 billion compared to $82.81 billion estimated.
The company did not provide guidance for its fourth quarter after analysts expected estimates of $1.31 in earnings per share and $90 billion in sales.
"In terms of an outlook in the aggregate, we expect revenue to accelerate in the September quarter despite seeing some pockets of softness," Apple CEO Tim Cook told CNBC.
Shares of Apple rose more than 3% after the bell following the report.