Stocks struggle for gains after GDP data and Amazon results; energy sector drops

U.S. stocks attempted to gain altitude early Friday, with major indexes up for their latest weekly advance following GDP data that pointed to strong economic growth and some healthy corporate results, notably from Amazon.

What are the main benchmarks doing?

The Dow Jones Industrial Average DJIA, +0.03% rose 12 points, or less than 0.1%, to 25,537. The S&P 500 SPX, -0.20% shed less than 2 points to 2,835, a decline of 0.1%, relinquishing modest opening gains. The Nasdaq Composite Index COMP, -0.51% also gave up openings gains to edge 0.2% lower at 7,839.

For the week, the Dow was looking at a gain of 2%, the S&P 500 was up 1.4%, and the Nasdaq rose 0.5%. Both the Dow and the S&P are on track for their fourth straight positive week, their longest such streak since January.

What’s driving 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 that analysts had been expecting.

President Donald Trump called the report “amazing” and “very sustainable.”

Investors will be scouring the data for any insight it could have on the impact of rising tensions between the U.S. and its major trading partners, as well as for any ramifications it could hold for the Federal Reserve’s planned rate of interest-rate hikes.

Read: Wall Street investors can’t remember the last time a GDP report was so crucial

In a bright spot for company news, Amazon.comInc. AMZN, +1.82%  gained 3.1% 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 nearly 60%

Read More Here...

Bookmark the permalink.