Wall Street stocks surge higher on better earnings and sub-3% on 10-year yields

• Microsoft, Intel and Amazon among others beat expectations on Thursday sending US indices higher.
• The 10-year US Treasury yields pullback sub-3% further collaborating to the stocks advance.  

US stocks surged higher on Thursday as quarterly earnings beat analysts’ estimates and the 10-year US Treasury yields pulled back from the high made at 3.035% to currently trade down in the 2.981% region. Investors were getting scared that if Treasury yields soared too high it would force people out of risky assets such as stocks into cash.

On Thursday, April 26, the S&P 500 rose 1.1% to close at 2,666.94. The Dow Jones Industrial Average gained 238.51 points and closed at 24,322.34, Visa was the winner stock in the index. The tech-heavy Nasdaq gained 1.6% to 7,118.68.

The move up in stocks was lead by better-than-anticipated earnings. Microsoft jumped a whopping 9.1% beating estimates with 95 cents per share versus 85 cents expected. The number users of the social media website was steady despite the Cambridge Analytica data leak scandal.

Advanced Micro Devices also beat expectations and the stock soared 14 percent while Chipotle went parabolic and jumped not less than 24.4% on better than expected earnings. Amazon also beats estimates with earnings per share of $3.27 per share versus $1.26 per share expected. Intel joins the party with 87 cents per share versus 72 cents per share forecast by analysts.

So far 80% of the S&P 500 companies have reported better than anticipated earnings. 

"There are two things driving the market: Earnings and the news flow out of Washington. The earnings reports have been good thus far, I see no reason why that wouldn't continue," said Randy Frederick, from the Schwab Center for Financial Research.

On the macroeconomic front, Friday will see the release of the US Gross Domestic Product which is expected to decelerate to 2% in the first quarter form 2.9% from the previous reading. On the same day the Bureau of Economic Analysis, Department of Commerce will release inflation data with the  Real Personal Consumption Expenditure indicator expected to accelerate at 2.4% from 1.9% on the core reading for the first quarter of the year.

Nasdaq daily chart