Stock market ends lower after disappointing results from Twitter, bellwethers

U.S. stocks closed lower Friday following disappointing results from Twitter Inc. and bellwethers, including Exxon and Intel. The highly-anticipated release of gross domestic product data also showed that economic growth remains relatively strong but came in a shade below lofty expectations.

How did the main benchmarks fare?

The Dow Jones Industrial Average DJIA, -0.30% slid 76.01 points, or 0.3%, to 25,451.06. The S&P 500 index SPX, -0.66% shed 18.62 points, or 0.7%, to 2,818.82 with seven of its 11 sectors lower as the technology sector sank 2%. The Nasdaq Composite Index COMP, -1.46% fell 114.77 points, or 1.5%, to 7,737.42.

For the week, the Dow added 1.6%, the S&P 500 rose 0.6%, and the Nasdaq fell 1.1%. Both the Dow and the S&P posted their fourth straight weekly gains, the longest such streak since January.

What drove the markets?

Consumers and government spending powered the economy to a 4.1% rate of gross domestic product growth in the second quarter, the fastest pace of growth in almost four years, although it was slightly below the 4.2% rate predicted, on average, by economists surveyed by MarketWatch.

President Donald Trump called the report “amazing” and “very sustainable.” Economists, on the other hand, said this pace of expansion wasn’t likely to last.

See: Fact checking Trump’s victory lap after the second-quarter GDP report

Separately, consumer sentiment fell to a six-month low in July, the University of Michigan said, but came inslightly better than expected.

In a bright spot for company news, Amazon.comInc. AMZN, +0.51%  gained 0.5% after the e-commerce company posted not only its biggest quarterly profit in history, but earnings that were double what was expected. The company extended its strong year-to-date rally and hit new records. It is up 55% thus far in 2018, playing a key role in boosting the market.

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