Upbeat forecasts drive big gains in US stocks
US stocks added to their recent rally on Friday after upbeat forecasts from Apple and Amazon, and the S&P 500 and Nasdaq posted their biggest monthly percentage gains since 2020. Most S&P 500 sectors ended higher, with energy rising 4.5 percent, the most of any S&P sector. Chevron rose 8.9 percent and Exxon Mobil shares jumped 4.6 percent after the companies reported record quarterly revenues. Apple shares gained 3.3 percent after the company said parts shortages were easing and that demand for iPhones was continuing. Amazon shot up 10.4 percent after it forecast a jump in third-quarter revenue from bigger fees from its Prime loyalty subscriptions. "In today's market, the Amazon and Apple numbers are giving the market support (on) the idea that two large companies that are a large part of the S&P seem so far to be able to navigate through these tougher times," said Rick Meckler, partner at Cherry Lane Investments, a family investment office in New Vernon, New Jersey. Stocks have also rallied this week on investor speculation that the Federal Reserve may not need to be as aggressive with interest rate hikes as some had feared. The Dow Jones rose 0.97 percent to 32,845, the S&P 500 gained 1.42 percent to 4,130 and the Nasdaq added 1.88 percent to 12,390. All three major indexes gained for the month and for the week. The S&P 500 gained about 9.1 percent for July in its biggest monthly percentage gain since November 2020, while the Nasdaq jumped about 12.3 percent in July in its biggest monthly gain since April 2020. The day's economic data showed US labor costs increased strongly in the second quarter as a tight jobs market boosted wage growth. But on Thursday, a government report showed the American economy unexpectedly contracted in the second quarter, suggesting to some investors that the economy was on the cusp of a recession. They said it might deter the Fed from continuing to aggressively increase rates as it battles high inflation. (Reuters)