U.S. stocks were flat on Friday as investors digested the first reading on second-quarter gross domestic product (GDP) and the latest quarterly earnings reports.
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The economy expanded at a robust 4.1% rate in the second quarter — the fastest pace in almost 4 years driven by a pickup in consumer spending plus a surge in soybean exports ahead of tariffs. The first-quarter GDP reading was also revised to 2.2% up from 2%.
Meanwhile, the Dow Jones Industrial Average was under pressure after Chevron and ExxonMobil missed second-quarter earnings targets.
After the closing bell Thursday, Amazon reported blowout earnings, and that helped the tech sector, that took a hit after Facebook’s disappointing forecast.
Another social media company, Twitter, released quarterly results Friday morning and shares fell as the company forecast for a decline in monthly active users. Twitter has been moving to purge fake accounts as social media companies have come under scrutiny following Facebook’s Cambridge Analytica data use scandal.
About half of the companies in the S&P 500 have reported quarterly numbers and so far the results are well ahead of expectations. Earnings at this point are up 22.1% from last year’s quarter, surpassing the 20.5% increase that analysts are looking for.
Other economic data released Friday included a reading on consumer sentiment. The final reading on July consumer sentiment came in at 97.9 versus the initial 97.1.
Commodities were mostly lower.