Alphabet, Starbucks send Wall Street to record high
By Noel Randewich (Reuters) - Robust earnings from Alphabet and Starbucks pushed the S&P 500 and Nasdaq indexes to record highs on Friday, with support from data showing U.S. economic growth slowed less than expected in the second quarter
By Noel Randewich
(Reuters) - Robust earnings from Alphabet and Starbucks pushed the S&P 500 and Nasdaq indexes to record highs on Friday, with support from data showing U.S. economic growth slowed less than expected in the second quarter.
The U.S. Commerce Department said GDP increased at an annualised rate of 2.1% in the second quarter, higher than a 1.8% rate that economists polled by Reuters forecast.
The GDP data further solidified wide expectations that the U.S. Federal Reserve will cut rates at its policy meeting next week. Those expectations have powered a solid run in stocks this month, helping Wall Street scale record levels.
"This is just what the market needed, not so soft that the economy is slowing down precipitously and not so strong that the Fed is going to reverse course," said Art Hogan, chief market strategist at National Securities in New York. "It shows that the economy is slowing, but not nearly enough to raise any red flags."
The data comes on the heels of European Central Bank President Mario Draghi speech on Monday, which was less dovish than investors had anticipated and led the S&P 500 to post its first loss in the week.
Two weeks into the second-quarter earnings season, about 75% of the 218 S&P 500 companies that have reported so far have topped profit estimates, according to Refinitiv data.
Their upbeat earnings pushed the S&P 500 communication services index <.SPLRCL> up 3.2%, the most among S&P sectors.
Lead negotiators for China and the United States are set to meet in Shanghai on Tuesday for two days in the next round of talks aimed at settling the U.S.-China trade war. The results of those talk will affect sentiment on Wall Street.
"Going forward, it's very important not to have a breakdown in trade talks. And earnings reports need to continue to come in as they have been - a little better than expectations," said Tom Martin, a senior portfolio manager at GlobAlt Investments in Atlanta.
At 12:12 p.m. ET, the Dow Jones Industrial Average <.DJI> was up 40.15 points, or 0.15%, at 27,181.13, the S&P 500 <.SPX> was up 20.02 points, or 0.67%, at 3,023.69. The Nasdaq Composite <.IXIC> was up 87.50 points, or 1.06%, at 8,326.04.
Among other stocks, McDonald's Corp
Advancing issues outnumbered declining ones on the NYSE by a 1.89-to-1 ratio; on Nasdaq, a 2.43-to-1 ratio favored advancers.
The S&P 500 posted 36 new 52-week highs and 2 new lows; the Nasdaq Composite recorded 100 new highs and 65 new lows.
(Additional reporting by Amy Caren Daniel in Bengaluru; Editing by Cynthia Osterman)
This story has not been edited by Firstpost staff and is generated by auto-feed.
By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States
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