U.S. stocks rallied after a shortfall from Amazon to rise on Friday, boosted by a beat from Apple that helped offset some worries of a tough week of Big Tech earnings in the third quarter.
The S&P 500 (^GSPC) gained 1.6%, while the Dow Jones Industrial Average (^DJI) rebounded nearly 600 points, or 1.8%. The tech-heavy Nasdaq Composite (^IXI) rose 1.7%. The moves came as Treasury yields climbed back above 4%.
On the economic data front, the Federal Reserve’s preferred inflation measure showed that prices are still hot across the broader US economy.
The core Personal Consumption Expenditure (PCE) price index rose 0.5% in September from the previous month, the Commerce Department said on Friday — a slight slowdown from the 0.6% pace. month to month in August. The gauge showed a 5.1% year-over-year increase, an acceleration from the annual 4.9% seen in August. Economists polled by Bloomberg had expected increases of 0.5% and 5.2%, respectively.
Personal income rose 0.4% in the month and consumer spending 0.6%, compared to economists’ estimates of a 0.4% increase for each measure.
Shares of Amazon (AMZN) fell about 9% on Friday after the e-commerce giant released fourth-quarter sales guidance that missed Wall Street estimates and delivered disappointing third-quarter results . The error marks the second straight quarter where weak finances at the company have caused its share price to drop by double digits.
Meanwhile, Apple (AAPL) offered a “dim light in an otherwise gloomy earnings season”, faring better than its Big Tech peers as they grappled with macro headwinds posed by inflation, rising interest rates and currency headwinds. The company posted record revenue but missed analysts’ projections in key categories such as iPhone and services. Shares rose 7% in intraday trading, marking the tech giant’s best day since July 2020.
Elsewhere in the tech spotlight, Elon Musk has taken ownership of Twitter (TWTR) after an extended offer to buy the social media platform was finalized Thursday night. Tesla’s CEO fired top executives at the end of his $44 billion acquisition of the company and announced plans to reverse lifetime bans from the website.
A busy start to Friday for investors was also marked by other reports from energy conglomerates Exxon Mobil (XOM) and Chevron (CVX), which both reported earnings and revenue above Wall Street estimates – boosting shares of each name by approximately 1.4% and 0.6%, respectively.
SoFi’s head of investment strategy, Liz Young, said in a note that she expects further downgrades and other notable misfires this quarter and next, which are likely to challenge the market more. Young noted, however, that on the positive side, it means investors can tick the box “earnings are affected.”
“As we go through this process, we’ll probably see the economy skidding in a bit more dramatic way than what we’ve seen so far,” Young said. “There are already several classic recession warning signs, and the risks that lie ahead bring the likelihood of a true recession closer.”
—
Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc
Click here for the latest stock market trends from the Yahoo Finance platform
Click here for the latest stock market news and in-depth analysis, including events moving stocks
Read the latest financial and business news from Yahoo Finance
Download the Yahoo Finance app to Apple Where android
Follow Yahoo Finance on Twitter, Facebook, instagram, Flipboard, LinkedInand Youtube
#Live #stock #market #news #updates #Stocks #rise #Apples #boom #outweighs #Amazons #lack