You are here
US: Strong tech earnings lift stocks, Nasdaq +1.5%
[NEW YORK] Wall Street stocks finished a choppy session higher Friday after large tech companies reported strong earnings and Washington policymakers haggled over another round of fiscal support.
The tech-rich Nasdaq Composite Index led the major indices, winning 1.5 per cent to end at 10,745.27.
The Dow Jones Industrial Average added 0.4 per cent at 26,429.06, while the broad-based S&P 500 gained 0.8 per cent to 3,271.26.
Tech giants Amazon, Alphabet, Apple and Facebook all reported better-than-expected results after the market closed Thursday, validating surging valuations built on expectations the sector would be a big winner amid the pandemic upheaval.
Apple surged 10.5 per cent and Facebook won 8.2 per cent, both all-time highs. Amazon also climbed, while Google parent Alphabet ended lower.
"What's good for these companies is not great for everybody else," said Art Hogan, chief market strategist at National Securities.
Broad investor sentiment has been weighed down by worries over the state of negotiations over a follow-up to the CARES Act stimulus measure passed by Congress in March.
Supplemental unemployment benefits paid for by the measure that have been credited with boosting consumption amid soaring joblessness are set to expire Friday.
"Now that we're coming back for an additional round, Washington politics as usual is taking hold," Mr Hogan said. "Both sides are arguing over things that they want, included in the next round. Neither side wants to give much."
Among other companies reporting results, Chevron fell 2.7 per cent, Under Armour shed 6.8 per cent and Pinterest surged 36.1 per cent.