The Nasdaq and S&P 500 rise on optimistic forecasts from Apple and Amazon

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A trader works on the floor of the New York Stock Exchange (NYSE) following a Fed rate announcement, in New York, U.S., July 27, 2022. REUTERS/Brendan McDermid

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  • Apple sees iPhone demand continues to strengthen
  • Amazon expects revenue to increase in third quarter
  • Intel lowers its annual forecast, shares fall
  • Oil giants Exxon and Chevron jump after record revenues
  • Indices up: Dow 0.25%, S&P 0.70%, Nasdaq 0.92%

July 29 (Reuters) – The Nasdaq and S&P 500 indices rose on Friday and were on course for their biggest monthly gain in nearly 20 months after upbeat earnings updates from Apple and Amazon and in the hope of a less aggressive monetary policy.

Mega-cap companies have fared far better this reporting season and anticipate less impact from the current economic turmoil, allaying investors’ fears that a potential recession could hurt their earning power. Read more

In the early afternoon, shares of Apple Inc (AAPL.O) gained 2.9% after the company said parts shortages were easing and demand for iPhones was unrelenting despite the tightening of other consumer spending. Read more

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Amazon.com Inc (AMZN.O) jumped 11.4% after forecasting higher third-quarter revenue on higher fees from its Prime loyalty subscriptions. Read more

The S&P 500 Technology Index (.SPLRCT) rose 0.7% and is expected to post a 12% gain for the month, its largest since April 2020.

However, gains in the Dow Jones Industrial Average (.DJI) were capped by Intel Corp (INTC.O), which fell 8.9% after slashing full-year sales and earnings forecasts and missing market estimates. second trimester. Read more

Meanwhile, investor concerns about bigger interest rate hikes eased somewhat on Thursday after GDP data showed the U.S. economy contracted for the second straight quarter. Read more

“In the context of a bear market phase, we have yet to see the bottom of 2022, because headwinds like inflationary pressures, and all the rest are still very real,” said David Keller, strategist in Head of Markets at StockCharts.com.

The Philadelphia SE Semiconductor Index (.SOX) slipped 0.4%, while consumer discretionary stocks (.SPLRCD) jumped 3.4%.

Data showed consumer spending in the United States rose more than expected in June as Americans paid more for goods and services as monthly inflation rose the most since 2005. Read more

As of 12:09 a.m. ET, the Dow Jones Industrial Average (.DJI) was up 81.34 points, or 0.25%, at 32,610.97, the S&P 500 (.SPX) was up 28.57 points, or 0.70%, to 4,101.00, and the Nasdaq Composite (.IXIC) rose 112.19 points, or 0.92%, to 12,274.78.

All three indexes were also set for their second straight weekly gain.

The S&P 500 (.SPNY) energy sector jumped 3.9% on gains of 8.2% in Chevron Corp (CVX.N) and 4.3% in Exxon Mobil (XOM.N) , after their record quarterly revenue thanks to soaring crude prices. Read more

Phillips 66 (PSX.N) rose 0.5% after the refiner reported higher second-quarter profits. Read more

Procter & Gamble Co (PG.N) fell 5.5% after predicting annual earnings below analysts’ estimates. Read more

Of the 279 S&P 500 companies that have reported earnings so far, 77.8% have exceeded expectations.

Analysts now expect S&P 500 earnings to rise 7.6% for the second quarter, up from their projection of 6.8% at the start of the three-month period, according to data from Refinitiv.

The CBOE Volatility Index (.VIX), also known as the Wall Street Fear Gauge, hit a 3-month low.

Advancing issues outnumbered declining issues with a ratio of 1.93 to 1 on the NYSE and 1.05 to 1 on the Nasdaq.

The S&P index recorded two new 52-week highs and 33 new lows, while the Nasdaq recorded 42 new highs and 51 new lows.

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Reporting by Shreyashi Sanyal and Aniruddha Ghosh in Bengaluru; Editing by Arun Koyyur and Anil D’Silva

Our standards: The Thomson Reuters Trust Principles.

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