Nasdaq, S&P 500 hit fresh records after strong Alphabet earnings
The S&P 500 and the Nasdaq Composite ticked higher on Thursday after Alphabet’s latest quarterly results came in better than expected.
The broad market index traded around flatline, while the tech-heavy Nasdaq rose 0.1%, with both indexes scoring new intraday all-time highs. The Dow Jones Industrial Average fell 307 points, or 0.7%, bogged down by shares of IBM slipping 9% after its second-quarter software revenue missed expectations.
Alphabet advanced 3% after posting a second-quarter earnings and revenue beat, bolstering gains in the S&P 500 and Nasdaq.
Along with IBM, gains were kept in check by declines in Tesla, which fell nearly 9% after auto revenue fell for a second straight quarter.
Investors also turned their attention to the ongoing feud between President Donald Trump and the Federal Reserve. The White House said that President Donald Trump will visit the Fed on Thursday, escalating his pressure campaign against Chairman Jerome Powell.
This is the first time in nearly two decades that an American president will make an official trip to the central bank.
Stocks are coming off a strong performance Wednesday, fueled by progress on trade talks.
The S&P 500 added 0.78% to hit its 12th record close of the year. The Dow Jones Industrial Average gained 1.14%, or 507.85 points — about four points away from a new record close. The Nasdaq Composite rose 0.61% and settled above 21,000 for the first time.
Stocks were also helped by a Financial Times report that the U.S. was inching closer to a trade deal with the European Union. Bloomberg confirmed the progress, citing diplomats briefed on the talks. This trade deal would raise tariffs to 15% on imports from the EU.
The tariff developments may strengthen investor sentiment, said Jeremy Siegel, Wharton School professor of finance and WisdomTree senior economist.
Source : CNBC
