Nasdaq, S&P 500 Rising From Upbeat Forecasts From Apple, Amazon

A trader works on the floor of the New York Stock Exchange (NYSE) after the Fed rate announcement in New York City, US, July 27, 2022. Reuters/Brendan McDermid

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Apple sees continued strength in iPhone demandAmazon expects higher revenue in third quarter Intel cuts annual forecasts, shares slideOil giant Exxon, Chevron jump after record revenue: Dow 0.25%, S&P 0.70%, Nasdaq 0.92%

July 29 (Reuters) – The Nasdaq and S&P 500 indexes rose on Friday and were on track for their biggest monthly gains in nearly 20 months, following upbeat earnings updates from Apple and Amazon and hopes of less aggressive monetary policy.

Mega-cap companies have largely outperformed this reporting season and are forecasting less impact from the current economic turmoil, with investors fearing a potential recession could erode their earnings power. read more

As of noon, shares of Apple Inc (AAPL.O) were up 2.9% after the company said parts shortages were easing and demand for iPhones continued despite consumers tightening other spending. read more

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Amazon.com Inc (AMZN.O) rose 11.4% after forecasting a jump in third-quarter revenue from larger fees from its Prime loyalty subscriptions. read more

The S&P 500 Technology Index (.SPLRCT) was up 0.7% and set to post 12% gain for the month, its biggest since April 2020.

However, gains on the Dow Jones Industrial Average (.DJI) were capped by Intel Corp (INTC.O), which fell 8.9% after cutting annual sales and profit forecasts and missing second-quarter estimates. read more

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Meanwhile, investor concerns about big interest rate hikes eased slightly on Thursday, as GDP data showed the US economy shrank for the second quarter in a row. read more

“In terms of a bear market phase, we haven’t yet seen a low for 2022, because inflationary pressures and everything else is still very real,” said David Keller, chief market strategist at StockCharts.com.

The Philadelphia SE Semiconductor Index (.SOX) slipped 0.4%, while Consumer Discretionary Stock (.SPLRCD) jumped 3.4%.

Data showed US consumer spending rose more than expected in June as Americans paid more for goods and services, the biggest increase in monthly inflation since 2005. Read more

At 12:09 p.m. ET, the Dow Jones Industrial Average (.DJI) was up 81.34 points, or 0.25%, at 32,610.97, the S&P 500 (.SPX) was up 28.57 points, or 0.70%, at 4,101.00, and the Nasdaq. The Composite (.IXIC) was up 112.19 points, or 0.92%, at 12,274.78.

The three indices were also set for a second consecutive weekly gain.

The S&P 500 energy sector (.SPNY) jumped 3.9%, with Chevron Corp (CVX.N) up 8.2% and Exxon Mobil (XOM.N) up 4.3%, on the back of rising crude prices to their record lows. The quarter was after revenue. read more

Phillips 66 (PSX.N) rose 0.5% after the refiner reported a jump in second-quarter profit. read more

Procter & Gamble Company (PG.N) fell 5.5% after forecasting full-year earnings below analysts’ estimates. read more

Of the 279 S&P 500 companies that have reported earnings so far, 77.8% have exceeded expectations.

According to Refinitiv data, analysts now expect S&P 500 profits to rise 7.6% for the second quarter, up from their 6.8% projection at the start of the three-month period.

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The CBOE Volatility Index (.VIX), also known as Wall Street’s fear gauge, hit a 3-month low.

Advancing issues followed by a 1.93-to-1 ratio on the NYSE and a 1.05-to-1 ratio on the Nasdaq.

The S&P index posted two new 52-week highs and 33 new lows, while the Nasdaq posted 42 new highs and 51 new lows.

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Reporting by Shreyashi Sanyal and Aniruddha Ghosh in Bengaluru; Editing by Arun Koyur and Anil D’Silva

Our Standards: Thomson Reuters Trust Principles.

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