The stock market opened lower on Friday, but later turned positive after Apple shares, with Amazon and Facebook outperforming better second-quarter results.
The Dow Jones Industrial Average was up 0.4% over the 100 mark on Friday, while the S&P 500 gained 0.8% and the Tech-Heavy Nasdaq Composite rose 1.5%.
The Dow fell nearly 300 points in the first day, but the market declined and was positive thanks to continued strengthening in Big Tech stocks.
America’s three largest tech companies — Apple, Amazon and Facebook — reported earnings and revenue that crushed Wall Street’s expectations late Thursday.
On Friday, Apple rose 10% to a new all-time high, leading to higher market growth, as well as announcing a 4-for-1 stock split, which was appeased by investors.
Shares of Big Tech companies are among the best-performing stocks so far this year, while concerns are growing on Wall Street that market concentration among a handful of big names could pose a risk to the market.
According to data from the University of Michigan, consumer sentiment fell from 72.5 in July to 78.1 last month.
Shares of companies that would benefit from the reopening of the economy — including airlines, cruise stocks, banks, and some retailers — receded on Friday.
“The earnings from the big tech and communications names are simply amazing,” says LPL Financial’s chief investment strategist, Ryan Detrick. “Yes, estimates were low and we all assumed they would beat, but this is another sign that the strong only got stronger.”
Gold prices touched over $ 2,000 an ounce on Friday, a new record. Investors continue to pile up gold’s safe assets amid the economic uncertainty caused by the coronovirus epidemic.
What to see
Emergency federal unemployment benefits, which were being paid $ 600 per week, are set to expire on Friday. Congress and the White House remain deadlocked over a new coronovirus incentive bill, meaning that there may be significant delays before a new unemployment insurance program gets up and running.
Reducing $ 600 unemployment benefit would be ‘absolutely devastating’ for the US economy (Forbes)
Here’s why your unemployment benefit may be delayed for months (Forbes)
Dow registered a decline of more than 200 points in GDP (Forbes)
Dow jump leaves rates unchanged near the zero after the Federal Reserve’s 150 points (Forbes)
Dow Falls 200 Points Senate Republican After Anil Coronovirus Relief Bill (Forbes)
Full coverage and live updates on Coronavirus