U.S. equity indexes rebounded from the morning lows to close higher for the first time this week, halting a three-day drop, aided by a stronger-than-expected export growth report out of China and a smaller-than-anticipated rise in domestic jobless claims. The markets were also fueled by some widely followed companies like Tesla and Groupon, which skyrocketed based on their quarterly reports.

The S&P 500 declined 1.1 percent the first three days of the week amid growing speculation the Federal Reserve will pare bond purchases this year as the economy strengthens. Data today showed claims for unemployment insurance edged up 5,000 last week to 333,000, near the consensus of 335,000. The four-week average of claims fell 6,250 to 335,500, the lowest level since November 2007, as labor market conditions continue to improve. The level is consistent with continued moderate payroll gains.

A separate report showed consumers last week were the most upbeat in more than five years. The Bloomberg Consumer Comfort Index rose to minus 23.5 for the period ended Aug. 4, its strongest reading since January 2008. Meanwhile, the Housing Affordability Index fell 10.9 points to 166.0 in June, its lowest level since July 2010. The decline was due to higher mortgage rates and median home prices, which overwhelmed a modest pickup in median family income.

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U.S. equities continued their red figures for a third consecutive session on Wednesday amid a mixed bag on the earnings front, while a sedentary economic calendar offered little help. Mortgage applications snapped a seven-week losing streak, while consumer credit expanded.

Growing uncertainty over when the Federal Reserve may start to wind down its stimulus played a part over last few trading sessions. Stocks sold off at the open after Asian indices endured a downbeat session with Japan’s Nikkei falling 4.0% as dollar/yen continued its recent weakness.

In earnings news, Dow member Walt Disney bested analysts’ expectations, but its studio entertainment unit underperformed. Moreover, Time Warner topped expectations and boosted its business outlook, and AOL beat estimates, while announcing an agreement to acquire Adap.tv and an increase to its share repurchase program.

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U.S. equity ETFs slid for a second consecutive day amid a plethora of mediocre earnings reports on both sides of the pond, despite the U.S. trade balance narrowing to its smallest deficit since October 2009. Adding to the negative atmosphere on the markets were comments from a pair of U.S. Federal Reserve officials fueling concern the Federal Reserve may reduce its bond purchases this year. All ten sectors of the S&P 500 Index registered losses.

Cyclical sectors pressured the index below the 1,700 level with financials, materials, and industrials leading to the downside. All top-weighted banks ended in the red while the broader sector slid 0.9%. Elsewhere, materials finished at the bottom of the leaderboard as steelmakers, gold miners, and chemical producers displayed broad weakness.

Most cyclical sectors trailed behind the broader market, but technology and discretionary shares outperformed slightly. In the discretionary space, media and publishing names displayed some strength after Washington Post agreed to sell its newspaper publishing business to Jeff Bezos. However, home builders and retailers lagged. Unlike growth-sensitive sectors, three of four countercyclical groups were able to erase a portion of their losses.

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