The Nasdaq Composite and the S & P 500 hit record highs as strong earnings and healthy growth in gross domestic product buoyed stocks across the board.
helped lead stocks higher with a banner day, surging after reporting a jump in revenue for its latest quarter and authorized buyback. It added and staggering $ 79 billion in market value, rising $ 109.28, or 9.6%, to $ 1,245.22. That was the best single-day earnings in years and its biggest dollar gain ever.
Alphabet boosted its market capitalization to more than $ 860 billion, according to FactSet, adding roughly the value of
in just a day. Alphabet's market-cap addition was larger than the individual market values of all but 72 other companies in the S & P 500. The company also blew past options traders' forecasts for a post-earnings move.
Analysts said the strength of the U.S. consumer, evident in some of the latest financial and economic data, as well as expectations that the Federal Reserve will soon cut interest rates, has helped nudge stocks higher. Cooling trade tensions also helped lift stocks this week after news that the US negotiators would travel to Shanghai to resume formal negotiations on trade.
Data released early Friday showed that gross domestic product grew at a 2.1
"The [GDP] report should give people comfort … that consumer is doing well," said Chris Zaccarelli, chief investment officer of the Independent Advisor Alliance. "The U.S.
On Friday, the S & P 500 rose 22.19 points, or 0.7% to 3025.86, notching its 13th record of the year. The tech-heavy Nasdaq Composite gained 91.67 points, or 1.1%, to 8330.21, its 10th record of 2019. And the Dow Jones Industrial Average edged up 51.47 points, or 0.2%, to 27192.45
All three major U.S. indexes finished the week with gains, with S & P up 1.7%, Dow Jones up 0.1% and Nasdaq up 2.3%.
The communication-services sector was the best performer of the S & P 500's 11 groups Friday, increasing more than 3% and lifted by Twitter and Alphabet, its biggest gainers. Twitter shares soared after it reported strong user and revenue growth in its second quarter. The social-media company's stock jumped $ 3.40, or 8.9%, to $ 41.52.
Investors have been watching heavyweights this earnings season as
have helped drive the S & P 500's record run this year. Big money managers have increased their stakes in these types of companies, which have been some of the best performers.
So far in 2019, tech companies have been winners as investors look for growth. The S & P 500 tech sector has risen 33% since the end of 2018, outpacing the broader index of 21% gain in the same period
Alphabet's massive gain Friday did not manage to move the list of the largest companies-it remained fourth in the S & P 500, behind Microsoft, Apple and Amazon. Its jump Friday came after it was the worst-performing tech company valued above $ 100 billion this year heading to its earnings report.
As market volatility recedes and stocks continue to rise, some analysts and investors said they expected higher gains for equities. Friday's data underscored the strength of the U.S. economy, analysts said. Now, many are preparing for the Fed to cut interest rates and provide a boost. The central bank meets next week.
"I think overall, the market is headed higher in the end-year," said Bruce Bittles, chief investment strategist at Robert W. Baird & Co.
Write to Gunjan Banerji at Gunjan.Banerji@wsj.com and Corrie Driebusch at email@example.com
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