US STOCKS-Wall Street is recovering from its first lows thanks to Microsoft’s boost

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US stocks rocked early declines and the S&P 500 and Nasdaq hit new intraday highs on Friday, as Microsoft’s gains helped offset declines from Amazon and Apple after disappointing quarterly earnings from the online retailer and from the iPhone manufacturer.

Microsoft shares hit an all-time high and approached a market cap of $ 2.5 trillion, topping Apple Inc’s market cap by around $ 2.46 trillion. Apple fell 2.2% after warning the impact of supply chain disruptions would be even worse in the current holiday sales quarter, while Amazon.com Inc lost 2.8% while forecasting negative sales for the holiday quarter due to labor shortages.

“The market has not rewarded too much for companies that have exceeded expectations which have turned overwhelmingly positive, but it has punished the failures,” said Liz Young, head of investment strategy at SoFi. “It tells me that we’re sort of entering that time where we have fundamentals starting to run the show again and it’s a healthy place to be.”

The Dow Jones Industrial Average fell 7.78 points, or 0.02%, to 35,722.7, the S&P 500 lost 3.15 points, or 0.07%, to 4,593.27 and the Nasdaq Composite lost 8.24 points, or 0.05%, to 15,439.88. The S&P 500 had fallen 0.65% earlier today.

Apple had risen about 2.5% while Amazon gained 1.6% in Thursday’s session, helping to send the S&P 500 and Nasdaq to closing records. With 279 S&P 500 companies reporting results until Friday morning, 82.1% have beaten earnings expectations, according to data from Refinitiv. The year-over-year profit growth rate for the third quarter is 39.2%.

Market players have been closely tuned to the ability of companies to cope with labor shortages, increasing pricing pressures and supply chain bottlenecks, and a strong earnings season. helped investors ignore a mixed macroeconomic picture with a Federal Reserve poised to start scaling back its massive bond purchases soon. The next central bank policy announcement will be on November 3.

Data showed that consumer spending in the United States rose sharply in September, as inflationary pressures mount. The data indicated that the jury is still out on whether the Fed’s “transitional” view on inflation will be true.

AbbVie Inc gained 4.2% as the U.S. drug maker raised its adjusted profit forecast for 2021 for the third time this year. Starbucks Corp fell 7.4% after the coffee chain said it expects FY2022 operating margin to be lower than its long-term target due to inflation and investments.

Falling issues outnumbered advancing ones on the NYSE by a ratio of 1.52 to 1; on the Nasdaq, a ratio of 1.14 to 1 favored the declines. The S&P 500 posted 46 new 52 week highs and 4 new lows; the Nasdaq Composite recorded 107 new highs and 65 new lows.

(This story was not edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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