MARKET SNAPSHOT: U.S. Stocks: Dow Lifted By Visa Gains

By Barbara Kollmeyer, MarketWatch

NEW YORK MarketWatch) -- U.S. stock shook off early morning gloom and moved decidedly higher on Thursday, with the blue-chips leading the gains.

The Dow Jones Industrial Average gained more 150 points, thanks to a a jump in its largest component, Visa Inc.. The benchmark S&P 500 followed the Dow, albeit with smaller gains.

Investors are digesting robust economic reports, a day after the Federal Reserve officially announced the conclusion of its bond-purchasing initiative.

Confirming the Fed's optimistic view on the economy, the first reading of third-quarter GDP came in better than expected, expanding at 3.5% annualized rate. Weekly jobless claims ticked up, however, claims remain below the 300,000, pointing to an improving labor market.

Dow Jones Industrial Average (DJI) owed its gains, in large part to Visa's rally, while more than two-thirds of its components traded in positive territory.

The S&P 500 index (SPX) and Nasdaq Composite (RIXF) were slightly higher.

More volatility coming? Jim Reid, strategist at Deutsche Bank, said the surprise was that the Fed chose to be so confident so soon after the recent volatility. "Last night's statement would have been near impossible to publish two weeks ago, so it is a bit of a risk," he said in a note. Four reasons the market will rally for the rest of 2014

"At a minimum, the Fed seem quite comfortable withdrawing liquidity from the market, and with that, we continue to think that bouts of volatility are more likely now than they were for most of the two years that QE3 was in existence," said Reid. Economists reactions to Fed statement: Signs of hawkishness

Earnings:

Visa Inc.(V) rose after the company's earnings and revenue beat forecasts.

Avon Products Inc.(AVP) topped Wall Street profit estimates as it reported positive results in Europe.

MasterCard Inc. (MA) beat analysts' forecasts for third-quarter profits and sales.

ConocoPhillips (COP) topped profit estimates and affirmed its margin outlook.

Kellogg Co.(K) topped profit estimates, excluding an accounting charge. Sales slightly missed estimates.

Lakeland Industries Inc.(LAKE) was up another 32%, following a big jump in late trade, after the hazmat-suit maker reported increased manufacturing capacity in response to the Ebola crisis. Alpha Pro Tech Ltd.(APT) soared as well.

GoPro Inc.(GPRO)(GPRO) and LinkedIn(LNKD) are expected to report after the market's close. (Read more about the day's notable stocks in Movers & Shakers column: http://www.marketwatch.com/story/groupon-linkedin-expedia-earnings-in-focus-2014-10-30.)

Dollar up, gold slides: The dollar rose against the euro (EURUSD) and the yen (USDJPY) -- briefly tapping its highest levels since early October against the Japanese currency -- as investors absorbed the Fed outcome. Gold(GCZ4) slid 1.7%, while crude-oil prices(CLZ4) were off nearly 1%.

European stocks pulled back, while Asian stocks saw mostly moderate gains, outside of a 0.4% drop for Hong Kong's Hang Seng Index .

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