S&P 500 and Nasdaq post biggest monthly gains since 2020

  • Apple sees continued strength in iPhone demand
  • Amazon expects higher revenue in the third quarter
  • Intel cuts annual forecasts, stocks slump
  • Oil giants Exxon and Chevron jump after achieving record revenues
  • Indices: Dow Jones rose 1%, Standard & Poor’s 500 rose 1.4%, Nasdaq rose 1.9%.

NEW YORK (Reuters) – US stocks added to their latest rally on Friday after upbeat forecasts from Apple (AAPL.O) and Amazon.com (AMZN.O), the S&P 500 and Nasdaq posted the biggest monthly percentage gains. Since the year 2020.

Most of the S&P 500 sectors closed higher, with the energy sector (.SPNY) up 4.5%, the highest of any S&P sector. Chevron Corp (CVX.N) stock rose 8.9% and Exxon Mobil (XOM.N) stock jumped 4.6% after the two companies reported record quarterly returns. Read more

Apple shares rose 3.3 percent after the company said parts shortages were easing and demand for iPhones continued. Amazon.com Inc jumped 10.4% after it expected a jump in third-quarter revenue from larger fees from Prime loyalty subscriptions. Read more

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“In today’s market, the Amazon and Apple numbers provide market support (on) the idea that two large companies that make up a large portion of S&P so far appear to be able to navigate through these trying times,” said Rick Meckler, partner at Cherry Lane Investments, a family investment office. in New Vernon, New Jersey.

Stocks also rose this week on investor expectations that the Federal Reserve may not need to be as aggressive with rate hikes as some had feared.

The Dow Jones Industrial Average rose 315.5 points, or 0.97%, to 32,845.13 points. The Standard & Poor’s 500 Index (.SPX) gained 57.86 points, or 1.42%, to 4,130.29 and the Nasdaq Composite Index increased 228.10 points, or 1.88%, to 12,390.69.

Gained all three major indicators for the month and for the week. The S&P 500 rose about 9.1% in July in the biggest monthly percentage gain since November 2020, while the Nasdaq jumped about 12.3% in July in its biggest monthly gain since April 2020.

In other earnings, Intel (INTC.O) shares fell 8.6% after the company cut its annual sales and earnings forecast and beat second-quarter estimates. Read more

US corporate results in the second quarter were mostly stronger than expected.

Of the 279 Standard & Poor’s 500 companies that have reported earnings so far, 77.8% have exceeded expectations. Profits for S&P 500 companies are now expected to increase 7.1% in the quarter versus 5.6% at the beginning of July, according to IBES data from Refinitiv.

Economic data today showed that labor costs in the US rose strongly in the second quarter as a tight job market boosted wage growth. Read more

But on Thursday, a government report showed that the US economy unexpectedly contracted in the second quarter, indicating to some investors that the economy was on the cusp of a recession. They said that could deter the Fed from continuing to aggressively raise interest rates while battling high inflation. Read more

Volume on US exchanges was 11.35 billion shares, compared to an average of 10.79 billion shares for the full session over the last 20 trading days.

Advance issues outnumbered decliners on the New York Stock Exchange by 2.92 to 1; On the Nasdaq, the 1.44 to 1 ratio favored gainers.

The S&P 500 recorded three new highs in 52 weeks and 33 new lows; The Nasdaq Composite recorded 63 new highs and 82 new lows.

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Additional reporting by Shreyachi Sanyal and Anirudha Ghosh in Bengaluru. Editing by Arun Koyyur, Anil D’Silva and Jonathan Oatis

Our Standards: Thomson Reuters Trust Principles.

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