US stocks edge up on strong GDP, lacklustre earnings

Traders work on the floor of the New York Stock Exchange (NYSE) July 6, 2018. — Reuters pic

NEW YORK, July 27 — Wall Street stocks edged higher early today following a blowout report on second-quarter US economic growth that was partly offset by disappointing earnings from ExxonMobil, Twitter and others.

About 25 minutes into trading, the Dow Jones Industrial Average was up 0.2 per cent at 25,565.39.

The broad-based S&P 500 added 0.1 per cent at 2,839.73, while the tech-rich Nasdaq Composite Index advanced 0.1 per cent to 7,858.32.

US growth expanded by an annual rate of 4.1 per cent, matching analyst expectations, due in part to strong consumer spending, according to Commerce Department data.

The growth rate was the strongest it has been since the third quarter of 2014.

“The key concern for some, though, is that it may not be sustainable given that export growth was likely juiced by pre-tariff activity,” said analyst Patrick O’Hare.

Several prominent companies underperformed following lacklustre earnings, with Dow member ExxonMobil sliding 2.9 per cent after missing profit estimates and Twitter plunging 15.1 per cent after the social network warned it could potentially lose millions of users as it cleans up the platform.

But Amazon advanced 3.0 per cent after quarterly profits jumped 12-fold to US$2.5 billion, far ahead of expectations.

Facebook rose 0.8 per cent, recovering a bit after suffering its biggest decline ever in the prior session following a weak outlook. — AFP

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