May 26, 2022

DS Duke

Global Business In World

U.S. Stocks Close at Record Highs

2 min read
The U.S. stock market set another round of record highs on Friday as Wall Street...

The U.S. stock market set another round of record highs on Friday as Wall Street looked past disappointing results from major companies to wrap up its best month of the year.

The Dow Jones Industrials finished in the green 89.08 points to 35,819.56

The S&P 500 gained 8.96 points to 4,605.38

The NASDAQ Composite forged ahead 50.27 points to 15.498.39.

All three closed at record highs, and the S&P 500 and NASDAQ clinched their best months since November 2020.

Amazon shares dropped more than 2% after the e-commerce giant badly missed earnings and revenue expectations for the third quarter.

Apple stock fell 1.8% after the tech giant’s quarterly revenue fell short of expectations amid larger-than-expected supply constraints on iPhones, iPads and Macs. It was the first time Apple’s revenues have missed Wall Street estimates since May 2017.

However, Microsoft rose more than 2% to surpass Apple as largest listed company in the world by market cap. Nike and Intel also had solid days to boost the Dow.

Shares of Exxon Mobil and Chevron rose on Friday after the energy giants topped earnings expectations. Starbucks, however, was under pressure after revenue from China missed expectations.

All three major averages posted their fourth positive week in a row and finished solidly higher for the month. The NASDAQ gained more than 7% for October, while the S&P 500 gained 6.9%. The Dow rose 5.8% for its best month since March.

Despite the recent disappointing results from Big Tech, the stock market has been raking in records amid solid earnings. About half of the S&P 500 have reported quarterly results and more than 80% of them beat earnings estimates from Wall Street analysts. S&P 500 companies are expected to grow profit by 38.6% year over year.

All three major averages are on track to post a winning week, their fourth positive week in a row. Month to date, the S&P 500 is up 6.7%, on pace for its best monthly performance since November 2020. The blue-chip Dow has gained 5.6% in October, while the NASDAQ has rallied 6.9%.

Prices for 10-year Treasurys were higher, thus lowering yields to 1.56% from Thursday’s 1.57%. Treasury prices and yields move in opposite directions.

Oil prices gained 55 cents to $83.36 U.S. a barrel.

Gold prices reversed $17.80 to $1,784.80 U.S. an ounce.

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