(Reuters) – U.S. stocks rose on Friday as bumper earnings from Amazon lifted consumer discretionary stocks and data showed that the U.S. economy grew at its fastest pace in nearly four years.
A Commerce Department report showed that gross domestic product increased at a 4.1 percent annualized rate in the second quarter as consumers boosted spending and farmers rushed shipments of soybeans to China to beat retaliatory trade tariffs.
Amazon.com (AMZN.O) jumped as much as 4 percent to hit a record high of $1,880, the biggest boost to the Nasdaq and the S&P 500.
The rise in the online retailer’s shares also led the consumer discretionary sector .SPLRCD 0.79 percent higher.
“At the end of the day, it really is about what is truly going on in the market and what is truly going on is earnings,” said J.J. Kinahan, chief market strategist at TD Ameritrade in Chicago.
“There just seems to be a lot of evidence the economy is really humming right along. The only part of the economy that seems to be struggling is wages. But everything else, it is really hard to argue with.”
Earnings of S&P 500 companies are now expected to rise 22.6 percent in the second quarter, compared with an estimate of 20.7 percent as of July 1, according to Thomson Reuters I/B/E/S.
Only four of the 11 main S&P sectors were lower, with technology’s 0.5 percent drop the steepest.
Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., July 24, 2018. REUTERS/Brendan McDermid
Intel’s (INTC.O) 7.9 percent drop was the biggest drag on Wall Street’s main indexes after its fast-growing data center business missed estimates.
Advanced Micro Devices (AMD.O), which is expected to have eaten into Intel’s market share, was up 5.2