June 5, 2023

Stock News Live Updates: Stocks rise as Apple boom outweighs Amazon miss

U.S. stocks shrugged off Amazon’s earnings miss and charged higher on Friday with a beat from Apple that helped ease concerns over a tough week for big tech third-quarter results.

The S&P 500 (^GSPC) rose 1.6%, while the Dow Jones Industrial Average (^DJI) jumped nearly 600 points, or 1.8%. The technology-focused Nasdaq Composite (^IXI) rose 1.7%. The moves came as Treasury rates rose above 4%.

On the economic data front, the Federal Reserve’s primary gauge of inflation showed prices remain hot across the U.S. economy.

The core price index of personal consumption expenditures (PCE) rose in September by 0.5 percent from the previous month, the Ministry of Commerce said on Friday – slightly slower than August’s 0.6 percent. The indicator showed 5.1 percent growth from the previous year, which is an acceleration from August’s annual 4.9 percent. Economists polled by Bloomberg had expected a rise of 0.5 percent and 5.2 percent.

Personal income rose 0.4% in the month and consumer spending rose 0.6%, while economists had estimated a 0.4% increase for each measure.

Shares of Amazon ( AMZN ) fell about 9% on Friday after the e-commerce giant posted fourth-quarter sales guidance that missed Wall Street estimates and delivered a disappointing third quarter. The flub marks the second consecutive quarter in which the company’s weak financial situation has led to a double-digit decline in share prices.

Meanwhile, Apple ( AAPL ) provided “a glimmer of light in an otherwise gloomy earnings season,” outperforming its Big Tech peers as they grappled with macroeconomic headwinds from inflation, rising interest rates and currency headwinds. The company reported record revenue but missed analysts’ forecasts in key categories such as iPhone and services. Shares rose 7% in intraday trading, the tech giant’s best day since July 2020.

Elsewhere in the tech spotlight, Elon Musk has taken ownership of Twitter ( TWTR ) after a takeover bid for the social media platform was completed late Thursday. Tesla’s CEO fired top executives after completing a $44 billion acquisition and announced plans to lift lifetime bans from the website.

The Twitter logo and a photo of Elon Musk are seen through a magnifying glass in this Oct. 27, 2022 photo. REUTERS/Dado Ruvic/Photo

A busy start to Friday for investors was also marked by other reports from energy conglomerates Exxon Mobil ( XOM ) and Chevron ( CVX ), both of which reported revenue and earnings that beat Wall Street estimates — lifting shares of each name by about 1.4%. respectively 0.6%.

SoFi’s head of investment strategy, Liz Young, said in a note that she expects further downward revisions and other significant shortfalls this quarter and next, which are likely to further challenge the market. However, Young noted that on the plus side, this means investors can tick off “earnings will suffer.”

“As we move through this process, the next thing we’re likely to see is the economy hitting a skid a little more dramatically than we’ve seen so far,” Young said. “There are already a number of classic warning signs of a recession, and the risks still ahead bring the likelihood of a true recession closer to visibility.”

Alexandra Semenova is a reporter for Yahoo Finance. Follow him on Twitter @alexandraandnyc

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