(MENAFN- Baystreet.ca) Stocks Climb to Record After Strong Week
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U.S. equities rose Friday with the major averages hitting new records as they overcame concerns about economic growth from earlier in the week.
The Dow Jones Industrials leaped 238.20 points to close the day and the week at 35,061.55, gaining for a fourth-straight day.
The S&P 500 grabbed 44.31points, or 1%, to 4,411.79, for a close above the high set on July 12.
The NASDAQ galloped 152.39 points, or 1%, to 14,836.99.
Strong earnings from tech stocks made investors optimistic ahead of reports next week from the biggest names in the sector. Twitter and Snap each jumped Thursday following better-than-expected second-quarter earnings reports. Twitter traded 3% higher, while Snap shot up 24%.
Facebook gained more than 5.5% on the results from its social media competitors. Alphabet added 3.5%. Both report next week along with Apple, Microsoft and Amazon.
The stock market overall has been bolstered by a strong earnings reporting season, with nearly a quarter of the S&P 500 having already reported. Of those companies, 88% have reported a positive surprise, according to FactSet. That would mark the highest percentage of reported surprises within the S&P since 2008 if that figure holds throughout the earnings season.
Profit growth for the second quarter is expected to come in at 76%, according to Refinitiv, which would be the best growth since 2009. Profit margins have also held up in the face of rising inflation, with companies reporting average profit margins of 12.8% so far for the second quarter, above the historic range, according to S&P Global.
American Express reported better than expected quarterly results Friday morning, giving its shares a 1.5% boost. Honeywell also reported strong earnings, though its stock is down 2%.
Shares of Kimberly-Clark are trading slightly higher after reporting earnings in line with Wall Street forecasts. It also cut its forecast for the year, citing higher costs and lower volumes.
All three U.S. stock averages closed the week in the green, rebounding from last week's losses and Monday's sharp selloff. The Dow dropped more than 700 points to start the week as yields fell, unnerving equity investors about the economy.
The S&P 500 is up 2% for the week and the NASDAQ is up 2.8%. Both are also within 1% of their intraday records. The Dow is up 1.1% for the week.
Prices for 10-Year Treasurys sagged, raising yields to 1.28% from Thursday's 1.27%. Treasury prices and yields move in opposite directions.
Oil prices gained 13 cents to $72.04 U.S. a barrel.
Gold prices doffed $3.40 to $1,802 U.S. an ounce.
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