The markets closed out the week with record highs as investors navigated the busiest week of this earnings season. The Dow 30 closed higher by 81, the S&P 500 added 13, and the Nasdaq finished up 27. The S&P and the Nasdaq both set records today.
The main area of focus was GDP growth numbers, which came in much better than expected (3.2% vs. 2.5%). Last quarters report saw a downtick in GDP, yet the S&P 500 still saw a 0.3% gain on the day of the report. This time the report beat handily but investors were cautious as overall inventories saw an uptick, hinting that the consumer is slowing. Some analysts suggest the rise in individual incomes has yet to translate into more spending by the consumer, while others worry that consumer spending will slow. The last retail sales numbers would argue that the consumer is still spending away.
Sector News
Semiconductors were weak once again, this time thanks to disappointing guidance from Intel after reporting an earnings beat. For the year the semiconductors have enjoyed a rather strong rally, posting gains of about 40% at highs. Since the start of earnings season for the chip stocks, however, the sector has pulled back.
Oil sold off on the day after reports emerged that President Trump called OPEC and asked for them to take actions to slow the rising cost of oil. Oil has been one of the better-performing areas this year with gains of about 50% off the lows.
Stock News
Amazon (NASDAQ: AMZN) shares were slightly higher today after beating earnings estimates by a whopping $2.43 per share. Revenue also beat Wall Street's expectations. As predicted, however, the company's growth is slowing. Amazon has previously warned about this. They also say they're focusing on spending on their fulfillment centers so they can offer 1-day shipping for Prime members. Shares remain at highs of the year and about 6.5% from all-time highs.
Ford (NYSE: F) shares shot higher by double digits early today as the company reported earnings and revenue that were much better than analysts expected. Ford credit saw a strong uptick in revenue. The company also cited higher margins and strong demand for trucks and SUVs here in the states. Shares hit their highest levels since July and are now higher by about 30% on the year.
Intel (NASDAQ: INTC) shares sold off about 10% today despite an earnings beat. Traders were focused on guidance on revenue for the second quarter as well as the full year, which came in less than expected. Today's move erased about half of the entire year's gains. Despite this loss, shares are still higher by double digits on the year.