Thursday proved the U.S. stock markets are not spooked by the Federal Reserve's decision to end its monthly bond buying with stocks soaring higher as big companies submitted stronger quarterly results, reports ABC News. The Dow Jones industrial average climbed nearly 200 points, thanks mostly to its highest-priced stock Visa.

When the market closed Wednesday, Visa, the world's largest payment-processing company, reported quarterly earnings much higher than analysts' forecasts. The higher earnings came from an increase in transactions. Visa also announced a plan to spend upwards of $5 billion on buying its own shares. Visa rose $22.91, or 11 percent, to $237.62.

Visa's archrival MasterCard had a surge in third-quarter profit that beat Wall Street's expectations, catapulting the world's second-largest payment-processing company stock up $6.82, or 9 percent, to $82.82.

The market has turned higher in recent weeks due to reports of increasing corporate earnings. S&P Capital IQ reports that more than half of its members have released third-quarter results, and about seven out of 10 overachieved Wall Street's targets.

Third-quarter earnings are now set to rise nearly 7 percent, with healthcare companies reporting the biggest profit gains.

Improved Economy - U.S. Stocks on the Rise

According to ABC News, the U.S. stock market achieved these points as of midday Thursday:

  • The Dow Jones industrial average increased 182 points, or 1.1 percent, to 17,159
  • The Standard & Poor's 500 index gained seven points, or 0.4 percent, to 1,994
  • The Nasdaq composite increased three points, a fraction of a percent, to 4,553

The rise in stocks is due to the U.S. economy that has grown at an annual rate of 3.5 percent in the three months ending in September, thanks to these three factors:

  • Business investment
  • Sales abroad
  • The biggest surge in military spending in five years

The Commerce Department's estimate for third-quarter growth was better than economists expected.

More people applied for unemployment benefits last week, according to the Labor Department, but the less-volatile four-week average declined to 281,000, the lowest level since May 2000.

U.S. Stock Market Enters Best 6 Months of the Year

There is more good news. The stock market is approaching what is historically the best time of year to reap investor rewards, Sam Stovall, chief equity strategist at S&P Capital IQ told ABC News. "We're entering the best six months of the year, November through April," he said.