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US stocks up as Facebook soars 30%

New York City - Technology stocks led US equity markets higher on Thursday as a surprisingly good earnings report from Facebook lifted the Nasdaq.

The tech-rich Nasdaq Composite Index rose 25.59 points to 3 605.19.

The Dow Jones Industrial Average increased 13.37 points to 15 555.61, while the broad-based S&P 500 added 4.31 points at 1 1 690.25.

Facebook was in focus after the leading social network's earnings report, released after the market closed Wednesday, showed robust growth in ad revenue from mobile technology.

Facebook shares skyrocketed nearly 30% to $34.36.

"The strength today is in the Nasdaq," said Kenny Landgraf with Kenjol Capital Management.

Art Hogan, managing director at Lazard Capital Markets, characterised earnings overall as a "mixed bag" adding that the market is in a mode of "consolidation" after recent record highs.

Dow member Dow Chemical rose 1.8% after besting earning expectations by a penny at 64 cents per share and reporting slightly higher-than-expected revenues. The company had bigger profit margins in some segments.

Credit-card company Visa jumped 4.2% after reporting a 16% rise in net income to $1.2bn and announcing a new $1.5bn share repurchase programme.

Natural gas company ONEOK surged 25.5% after announcing a plan to split into two companies, a move that is expected to lift dividends.

Homebuilder PulteGroup plummeted 10.3% after revenues came in 8% below expectations at $1.28bn and net new home orders sank 12% from the prior year.

Another homebuilder, Ryland Group, fell 5.1% after revenues came in 16% shy of projections. But new orders rose 56.7% and backlog also increased.

Bond prices dropped. The yield on the 10-year US Treasury bond rose to 2.61% from 2.59% on Wednesday, while the 30-year climbed to 3.67% from 3.65%. Bond prices and yields move inversely.


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