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Benchmarks closed higher on Friday as strong earnings from bigwigs Alphabet and Starbucks boosted investor sentiment. Better-than-expected GDP growth also helped major indexes end in the green.
The Dow Jones Industrial Average increased 0.2% or 51.47 points, to close at 27,192.45. The S&P 500 gained 0.7% to close at an all-time high of 3,025.86. The tech-laden Nasdaq Composite Index too closed all-time high at 8,330.21, gaining 1.1%. The fear-gauge CBOE Volatility Index (VIX) decreased 4.6% to close at 12.16. Advancers outnumbered decliners on the NYSE by a 2.04-to-1 ratio. On Nasdaq, a 2.34-to-1 ratio favored advancers issues.
Q2 Earnings Pushes Indexes Higher
All the major indexes remained unshaken even after National Economic Council Director Larry Kudlow said that no grand deal is expected out of upcoming U.S.-China trade talks. The market received a boost from better-than-expected earnings from Alphabet Inc. (GOOGL - Free Report) and Starbucks Corporation (SBUX - Free Report) . Starbucks carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 RanK (Strong Buy) stocks here.
Alphabet reported earnings of $14.21 per share in Q2 that surpasses the Zacks Consensus Estimate of $11.49. Net revenues were up to $3.17 billion beating the Zacks Consensus Estimate of $30.90 billion. Advertisements revenue has been a key to growth along with high demand in cloud service. Alphabet’s shares jumped to 9.6%.
Starbucks declared Q2 earnings of $0.78 per share beating the Zacks Consensus Estimate of $0.72 per share. It posted revenues of $6.82 billion surpassing the Zacks Consensus Estimate by 2.07%. Revenues it a record high as Starbucks posted biggest same-store sales growth in three years. The company has opened 442 new coffee outlets across the world during this period that also added to rise in sales. Starbucks’ stocks jumped to 8.9%.
Higher-than-Expected GDP Growth
On Friday, the U.S. Commerce Department announced that GDP growth had clocked in at 2.1% in the second quarter, surpassing expectations of a 1.8% increase. However, the pace declined from the previous quarter’s growth rate of 3.1%.
Growth was primarily fueled by a 4.3% increase in consumer expenditure, the highest gain in six quarters. Steady job additions and consistent wage gains are continuing to fuel consumer expenditure. The government’s consumption expenditures and gross investments increased 5%, the highest since third quarter of 2015.
However, business investment however declined 5.5%, the worst since the fourth quarter of 2015 when it experienced a decline of 10.6%. A major reason behind this drastic fall is weak manufacturing that puts pressure on inventories and fixed investment. The U.S.-China trade war also has weighed on imports and exports, leading inventories to rise.
Weekly Round Up
Last week, the Dow, the S&P 500 and the Nasdaq posted gains of 0.1%, 1.7% and 2.3%, respectively. Better-than-expected earnings from tech and consumer discretionary stocks boosted the indexes. Investor, also shrugged off threats rising from the U.S.-China trade talks.
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Stock Market News For Jul 29, 2019
Benchmarks closed higher on Friday as strong earnings from bigwigs Alphabet and Starbucks boosted investor sentiment. Better-than-expected GDP growth also helped major indexes end in the green.
The Dow Jones Industrial Average increased 0.2% or 51.47 points, to close at 27,192.45. The S&P 500 gained 0.7% to close at an all-time high of 3,025.86. The tech-laden Nasdaq Composite Index too closed all-time high at 8,330.21, gaining 1.1%. The fear-gauge CBOE Volatility Index (VIX) decreased 4.6% to close at 12.16. Advancers outnumbered decliners on the NYSE by a 2.04-to-1 ratio. On Nasdaq, a 2.34-to-1 ratio favored advancers issues.
Q2 Earnings Pushes Indexes Higher
All the major indexes remained unshaken even after National Economic Council Director Larry Kudlow said that no grand deal is expected out of upcoming U.S.-China trade talks. The market received a boost from better-than-expected earnings from Alphabet Inc. (GOOGL - Free Report) and Starbucks Corporation (SBUX - Free Report) . Starbucks carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 RanK (Strong Buy) stocks here.
Alphabet reported earnings of $14.21 per share in Q2 that surpasses the Zacks Consensus Estimate of $11.49. Net revenues were up to $3.17 billion beating the Zacks Consensus Estimate of $30.90 billion. Advertisements revenue has been a key to growth along with high demand in cloud service. Alphabet’s shares jumped to 9.6%.
Starbucks declared Q2 earnings of $0.78 per share beating the Zacks Consensus Estimate of $0.72 per share. It posted revenues of $6.82 billion surpassing the Zacks Consensus Estimate by 2.07%. Revenues it a record high as Starbucks posted biggest same-store sales growth in three years. The company has opened 442 new coffee outlets across the world during this period that also added to rise in sales. Starbucks’ stocks jumped to 8.9%.
Higher-than-Expected GDP Growth
On Friday, the U.S. Commerce Department announced that GDP growth had clocked in at 2.1% in the second quarter, surpassing expectations of a 1.8% increase. However, the pace declined from the previous quarter’s growth rate of 3.1%.
Growth was primarily fueled by a 4.3% increase in consumer expenditure, the highest gain in six quarters. Steady job additions and consistent wage gains are continuing to fuel consumer expenditure. The government’s consumption expenditures and gross investments increased 5%, the highest since third quarter of 2015.
However, business investment however declined 5.5%, the worst since the fourth quarter of 2015 when it experienced a decline of 10.6%. A major reason behind this drastic fall is weak manufacturing that puts pressure on inventories and fixed investment. The U.S.-China trade war also has weighed on imports and exports, leading inventories to rise.
Weekly Round Up
Last week, the Dow, the S&P 500 and the Nasdaq posted gains of 0.1%, 1.7% and 2.3%, respectively. Better-than-expected earnings from tech and consumer discretionary stocks boosted the indexes. Investor, also shrugged off threats rising from the U.S.-China trade talks.