NEW YORK: The Nasdaq outperformed peers on Friday as robust updates from Amazon.com and Intel lifted beaten-down megacaps, while investors also drew comfort from data that showed inflation rose largely in line with expectations.
Amazon.com jumped 8.4% after the e-commerce giant reported a pick up in growth at its most profitable cloud business.
Intel rallied 9.0% after the chipmaker forecast fourth-quarter revenue and margins above estimates. Chip stocks Advanced Micro Devices and Nvidia added 3.6% and 1.3%, respectively.
Megacaps Microsoft, Meta Platforms, Tesla and Apple rose between 0.8% and 2.9% at the end of a rough week for Big Tech.
Meanwhile, data showed US consumer spending increased more than expected in September, keeping it on a higher growth path heading into the fourth quarter.
The personal consumption expenditures price index, considered to be the Federal Reserve’s preferred inflation gauge, climbed 0.4% in September compared with an estimated 0.3% rise. Core inflation which excludes volatile food and energy components rose 0.3%, meeting estimates.
Data earlier this week showed the US economy grew almost 5% in the third quarter.
“Strong growth in employment and GDP are keeping the door open to further rate hikes by the Federal Open Market Committee,” said Philip Marey, senior US strategist at Rabobank.
Traders, however, have nearly fully priced in the Fed keeping interest rates unchanged in its meet next week, according to CME’s FedWatch Tool, while bets of a pause in December stand at nearly 80%.
At 11:58 a.m. ET, the Dow Jones Industrial Average was down 141.09 points, or 0.43%, at 32,643.21, the S&P 500 was up 6.63 points, or 0.16%, at 4,143.86, and the Nasdaq Composite was up 141.43 points, or 1.12%, at 12,737.04.
Consumer discretionary and information technology led gains amongst the major S&P 500 sectors, while energy was the top laggard.
Weighing on the Dow, Chevron fell 5.5% after the oil major reported a drop in third-quarter profit.
Shares of Exxon Mobil lost 1.8% after its year-on-year earnings plunged nearly 54%, though it posted a higher profit compared with the prior quarter.
Ford Motor sank 9.2% after withdrawing its full-year results forecast due to “uncertainty” over the pending ratification of its deal with the United Auto Workers union, and warning of continued pressure on electric vehicles.
Of the 245 companies in the S&P 500 that have reported earnings so far, 77.6% beat earnings expectations, LSEG data showed. Third-quarter earnings are expected to grow 4.3% from a year earlier.
Enphase Energy dipped 14.6% after the solar inverter maker forecast fourth-quarter revenue below estimates.
Accounting for Friday’s moves, all three indexes are set to log weekly losses.
The tensions in the Middle East were also on investors’ radar, with a Hamas official tying the release of hostages to Israel stopping the bombardment of Gaza which it launched after a deadly rampage by Hamas into the southern part of the country nearly three weeks ago.
Declining issues outnumbered advancers by a 1.38-to-1 ratio on the NYSE and by a 1.21-to-1 ratio on the Nasdaq.
The S&P index recorded no new 52-week high and 50 new lows, while the Nasdaq recorded 10 new highs and 311 new lows.