US STOCKS-S&P 500, Nasdaq hit record highs on tech earnings boost, upbeat data

* Apple, Facebook jump on strong earnings
* Communication services leads gains among S&P 500 sectors
* U.S. economy accelerates in Q1; jobless claims edge lower
* Indexes up: Dow 0.39%, S&P 0.70%, Nasdaq 0.75%

(Updates prices to open, adds comments)
By Shivani Kumaresan
April 29 (Reuters) - The S&P 500 and Nasdaq indexes hit
record levels on Thursday after stellar earnings from Apple and
Facebook powered a rally in tech stocks, while upbeat economic
data supported bets of a swifter economic recovery.
Apple Inc AAPL.O gained 1.0% after posting sales and
profits ahead of Wall Street estimates, led by much
stronger-than-expected iPhone and Mac sales. Facebook Inc FB.O jumped 6.6% to hit an all-time high on
beating analysts' expectations for both quarterly revenue and
profit, helped by a surge in digital ad spending during the
pandemic, along with higher ad prices. The S&P 500 communication services sector .SPLRCL , which
houses Facebook, jumped 2.4%, leading gains among the 11 major
S&P sectors.
"We expected tech earnings to come in strong and they
comfortably cleared the high bar which is extremely impressive.
But also, it is another sign just how quickly this economy
continues to roar back," said Ryan Detrick, chief market
strategist at LPL Financial.
Data showed the U.S. economic growth accelerated in the
first quarter, fueled by massive government aid to households
and businesses, while a Labor Market report showed 553,000
people filed for state unemployment benefits last week, compared
with 566,000 in the prior period.
"The outlook keeps getting better ... and with household
balance sheets in great shape and the U.S. economy opening up
more and more we should be expecting very strong growth for
several quarters to come," James Knightley, chief international
economist at ING, wrote in a client note.
More earnings reports from Dow components rolled in, with
Caterpillar Inc CAT.N falling 1.7% even as it reported a rise
in adjusted first-quarter profit. Drugmaker Merck & Co Inc
MRK.N slid 3.3% on posting a drop in quarterly profit.
Global shares extended gains after the Federal Reserve said
it was too early to consider rolling back emergency support for
the economy, and U.S. President Joe Biden proposed a $1.8
trillion stimulus package. At the conclusion of the U.S. central bank's latest policy
meeting on Wednesday, Fed Chair Jerome Powell acknowledged the
economy's growth, but said there was not yet enough evidence of
"substantial further progress" toward recovery to warrant a
change in policy. At 9:49 a.m. ET the Dow Jones Industrial Average .DJI was
up 132.64 points, or 0.39%, at 33,953.02, the S&P 500 .SPX was
up 29.45 points, or 0.70%, at 4,212.63 and the Nasdaq Composite
.IXIC was up 105.39 points, or 0.75%, at 14,156.42.
McDonald's Corp MCD.N rose 0.5% after beating Wall Street
estimates for comparable sales and returning to pre-pandemic
levels of growth. Amazon.com Inc AMZN.O , Twitter Inc TWTR.K and Gilead
Sciences Inc GILD.O are set to report their earnings later in
the day.
Advancing issues outnumbered decliners by a 2.24-to-1 ratio
on the NYSE and by a 1.40-to-1 ratio on the Nasdaq.
The S&P index recorded 91 new 52-week highs and no new low,
while the Nasdaq recorded 101 new highs and four new lows.