Stocks advanced to record levels Friday as investors assessed corporate earnings reports and economic updates. The Dow added 51 points on the session. The S&P 500 gained 0.7% and Nasdaq Composite rose 1.1% to prompt both indexes to finish at all-time highs.
The Communications Services sector lead the gains as Alphabet surged 9.6% after topping Wall Street estimates on both the top- and bottom-line and announced plans for a $25 billion share buyback. Shares of T-Mobile advanced 5.4% after the Department of Justice approved its acquisition of Sprint. Amazon slid 1.6% after falling short of analyst revenue estimates and revealing lower-than-anticipated growth in its web services business. Starbucks jumped 8.9% after besting consensus earnings estimates and raising its forward guidance. Intel fell 1.1% despite the chipmaker surpassing Wall Street profit targets and confirming Apple’s acquisition of its smartphone modem business unit for $1 billion. Earnings season is off to a strong start with more than two-thirds of companies that have reported so far beating analyst expectations, according to FactSet data.
On the economic front, the first look at second-quarter GDP revealed the U.S. economy expanded at a 2.1% annualized pace, topping consensus estimates of 1.8%, but down the first quarter’s 3.1% figure. Separately, personal consumption increased 4.3% year-over-year in the same period, the strongest reading in four years and above projections of 4.0%. Treasuries were little changed with the yield on the 10-year note flat at 2.07%.
In commodities, WTI crude added 0.3% to $56.19/barrel. COMEX gold ticked up 0.1% to $1,416.60/ounce.