US stocks climb, erase earlier losses, amid tech earnings blowout and stimulus hope
stocksrose on Friday, erasing earlier losses in the final hour of trading, as mega-cap tech firms reported better-than-expected quarterly earnings.
- Shares of Facebook, Apple, and Amazon surged following earnings beats reported Thursday after the bell.
- The gains in tech offset worries around spiking coronavirus and their impact on the economic recovery.
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US stocks climbed on Friday, erasing earlier losses in the final hour of trading, as mega-cap tech firms reported better-than-expected quarterly earnings.
Shares of Facebook, Apple, and Amazon jumped after reporting quarterly earnings that beat analyst expectations and showed the tech sector's resilience in the face of a recession. Apple surged more than 10% to an all-time high close, and briefly overtook oil giant Saudi Aramco as the most valuable company in the world.
Elsewhere in earnings, Caterpillar reported higher-than-expected EPS and revenue, but shares slid. Pinterest surged as much as 37% on an earnings beat showing revenue and user growth. Oil giant Chevron fell after reporting dismal quarterly earnings as COVID-19 hit demand for oil.
Here's where US indexes stood at the 4 p.m. ET market close on Friday:
- S&P 500: 3,271.13, down 0.8%
- Dow Jones industrial average: 26,428.32, up 0.4% (115 points)
- Nasdaq composite: 10,745.27, up 1.5%
Meanwhile, coronavirus cases continue to climb in the US, spurring concerns of a prolonged economic recovery. New cases jumped by more than 70,000 on Thursday, bringing the total to more than 4.4 million, according to data from Johns Hopkins University. Thus far, more than 152,000 Americans have died from the virus.
Investors continue to watch economic conditions to track the ongoing economic recovery. US gross domestic product slumped by a record 33% in the second quarter, according to figures released Thursday. The same day, initial jobless claims increased for the second straight week, snapping a stretch of declines since March.
US consumer sentiment slumped further in July amid an uptick in new COVID-19 cases, according to a report Friday. Personal income fell more than expected in June as the impact of one-time government stimulus checks faded, but consumer spending jumped 5.6%.
Congress and the White House again failed to come to an agreement on coronavirus relief on Thursday night. The additional $600 weekly unemployment insurance benefit expired at the end of July, slashing income for millions of out-of-work Americans.
Gold increased to a record high, and oil gained. West Texas Intermediate crude rose as much as 1.6%, to $40.55 per barrel. Brent crude, the international benchmark, gained 1.2%, to $43.44 per barrel, at intraday highs.
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