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S&P 500, Nasdaq register biggest monthly gains since 2020

Published 07/29/2022, 07:30 AM
Updated 07/29/2022, 08:00 PM
© Reuters. A trader works on the floor of the New York Stock Exchange (NYSE) following a Fed rate announcement, in New York City, U.S., July 27, 2022. REUTERS/Brendan McDermid

By Caroline Valetkevitch

NEW YORK (Reuters) - U.S. stocks added to their recent rally on Friday after upbeat forecasts from Apple and Amazon.com, 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%, the most of any S&P sector. Chevron Corp (NYSE:CVX) rose 8.9% and Exxon Mobil (NYSE:XOM) shares jumped 4.6% after the companies reported record quarterly revenues.

Apple Inc (NASDAQ:AAPL) shares gained 3.3% after the company said parts shortages were easing and that demand for iPhones was continuing. Amazon.com Inc (NASDAQ:AMZN) shot up 10.4% 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 Industrial Average rose 315.5 points, or 0.97%, to 32,845.13; the S&P 500 gained 57.86 points, or 1.42%, to 4,130.29 and the Nasdaq Composite added 228.10 points, or 1.88%, to 12,390.69.

All three major indexes gained for the month and for the week. The S&P 500 gained about 9.1% for July in its biggest monthly percentage gain since November 2020, while the Nasdaq jumped about 12.3% in July in its biggest monthly gain since April 2020.

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In other earnings, Intel Corp (NASDAQ:INTC) shares fell 8.6% after the company cut annual sales and profit forecasts and missed second-quarter estimates.

Second-quarter U.S. corporate results have mostly been stronger than expected.

Of the 279 S&P 500 companies that have reported earnings so far, 77.8% have exceeded expectations. Earnings for S&P 500 companies now are expected to have increased 7.1% in the quarter versus an estimated 5.6% at the start of July, according to IBES data from Refinitiv.

The day's economic data showed U.S. 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.

Volume on U.S. exchanges was 11.35 billion shares, compared with the 10.79 billion-share average for the full session over the last 20 trading days.

Advancing issues outnumbered declining ones on the NYSE by a 2.92-to-1 ratio; on Nasdaq, a 1.44-to-1 ratio favored advancers.

The S&P 500 posted three new 52-week highs and 33 new lows; the Nasdaq Composite recorded 63 new highs and 82 new lows.

Latest comments

need a broker
Grumble, grumble, grumble. The market is merely reflecting sentiment that the fed will likely succeed in an economic soft landing. That contradicts with some people's desire to see America fail, but the world does not invest in American companies for any reasons other than expectations of growth and profit.
The US market is high on weed.
Next week , oil up , nasdaq down , oil companeis up , Chinese auto companies uos
manipulated buying program to cover the recession
This is true. I was having dinner with the cabal last week and someone said, "Hey, why don't we buy a lot of stock in US companies to cover the recession." We all did a shot of adrenachrome and agreed. I even got to click the button on the buying program. Great fun, you should think of joining.
The only way the fed speak makes sense is jpowell is waiting for the midterm elections to be over.
To so what? Release the Kraken?
Short This Beach!
the last 24 hour 22 modifications have been made on wikipedia for ...recession.....leftwing nutjobs trying to convince everyone to have the same mental illness as them
 look who drank the whole bottle kool aid of leftwing media...funny part is your pressious cnn/msnbc did exatly define recession as 2 quarter of negative gdp you just have to watch clips of 2020
  Did cnn/msnbc said US is NOT in a recession?
2020? So there was a Trump recession?
up goes down. housing collapse would trigger downfall.
Consumers are dealing with double digit inflation, getting squeezed tighter everyday, which is increasing companies profits? The fed's rate increases are non-linear once they are passed on to the consumer which increases the cost of debt households are carrying to make ends meet so most banks are doing very well too. Trump reduced corp taxes which has allowed them to purchase stock back inflating share prices (and any indivdual tax cuts are expiring unlike the perminant corp cuts). Unemployment #'s dont count under employed or those that ran out of benefits. (and somehow when the market dips its Bidens fault), record accumulation of wealth to top 1%, many in the top 5% are now paycheck to paycheck. All great fundimentals for a solid economy. oh and its all Biden's fault 🤦‍♂️
The most flagrant, criminal 2 weeks of FRAUD this year, as the biggest investment JOKE in the world defrauds America in broad daylight.
Come Monday, you will say that day is the "most" & "biggest"
Electric cars seem scams for rich folks. Tax credit for electric cars under the name of environment?
And for less dependency on hostile, energy-exporting regimes
I bought every commodity to fail us inflation
markets can never go down. only way is up!
It's a ponzi scheme
  A ponzi scheme depends on new investors buying in, and doesn't usually recover after a fall in value.  The stock market ain't that..
WTI oil shot up to 100+ now. Fed needs to jack up multiple 100 bps in a hurry.
It's all a scam. I posted mid last week that the drop in oil was bogus. After FED announcement it would rally.
It actually looks downbeat
No value of us doller
All commodity price goes up
china fail us
Early 2000s pretty commonplace to miss and give unattainable forecast.
The trading hours are too early. The market could fall to negative finish.
Can't have a loss on a Friday in the biggest investment JOKE in the world, as the most criminally manufactured "rally" closes out the week in the greatest financial fraud in history.  Wall Street sends the US working class into another weekend with a financial knife in their back.  How convenient that thousands of points in "gains" unfold before 401K contributions will be made.  Time for the Wall Street criminals to unloaded fraudulently inflated equities on mutual funds once again.
Preach On! The newbies don't know how free trading was.
Last Friday was red
talk on PCE!out of control inflation! instead of better than lousy!
Intc is more important than Amzn. Someone could find a better mouse trap in retail business.
Pg missed. Walmart missed so did many others. Does that matter. I guess not as ling as Fed keeps buying 380 million in bonds every day
who cares?! just follow the trend.  i bought more stocks since last Monday. so ez to track the reverse trend
I see your reasoning but it is not feasible to put ANY faith in the current economy globally and I'm afraid the stock market would be the least of our worries
The Fed balance sheet has been declining for months
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