The Dow Jones Industrial Average (DJINDICES:^DJI) was up more than 50 points on Thursday as of 11:25 a.m. EST following U.S. data on the state of the labor market. Initial jobless claims came in worse than anticipated, at 339,000 versus an estimate of 330,000, while nonfarm productivity missed economists' expectations, coming in at 1.9% the 2.2% estimate.
Janet Yellen, the president's nominee to succeed Ben Bernanke as Federal Reserve chair, is currently testifying before the Senate Banking Committee. She has backed the Fed's quantitative easing programs, and observers believe she will likely continue or even expand those programs while she's in charge of the central bank.
In terms of individual stocks, Dow Jones component Cisco (NASDAQ:CSCO) plunged following its earnings report, while Gogo (NASDAQ:GOGO) continued its incredible run. Sony (NYSE:SNE) added more than 3% ahead of the release of its upcoming console, the PlayStation 4.
Cisco drops following earnings
Shares of networking giant Cisco fell about 12% following a disappointing earnings report. Last quarter, the company's revenue grew just 1.8%, far short of the 3% to 5% growth analysts had expected. Cisco's guidance for the coming quarter was even worse, with the company now seeing revenue falling 8% to 10%.
Cisco's international business seems to be the problem, particularly China and Russia, where orders fell 18% and 30%, respectively. As revenue shrinks, earnings are declining: Cisco's earnings of $0.37 per share was lower than the $0.39 in the prior year.
Gogo's momentum rally continues unabated
Gogo's rally on Thursday was equally as momentous as Cisco's drop. The provider of in-flight wireless Internet added close to 10% to its shares on Thursday, and is now up more than 66% in just the last five days. With the recent move, shares of Gogo have nearly doubled since the company began trading in June, making it one of the best IPOs of the year.
Still, there wasn't much news to account for Gogo's move, other than perhaps investors continuing to pile in the stock following a wave of good news. Earlier in the week, Gogo reported better-than-expected earnings, which kicked off the rally. CNBC's Jim Cramer then recommended the stock, giving it a buy rating. Other analysts, however, have been far more negative -- UBS cut its rating on the stock to neutral, citing present valuation.
Sony's new video game console will go on sale tomorrow
Shares of Sony also rallied on Thursday, though not nearly as much as Gogo. The Japanese electronics giant added more than 3% to its share price a day ahead of the release of its new PlayStation 4 video game console.
At just $399, the device is $100 cheaper than its major competitor, the Xbox One, which should help sales, at least initially. Sony will look to the PlayStation 4 as a key driver of its business in the wake of disappointment elsewhere. When Sony reported earnings in October, it was forced to cut its forecast for the year, as its TV, camera, and PC business came in far weaker than expected. Now, Sony plans to focus on mobile devices, imaging technology, and gaming going forward.