Live Stock Market News Updates: Stocks Rise as Apple’s Boom Outweighs Amazon’s Loss

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U.S. stocks elbowed their way past an Amazon earnings loss to cash in more on Friday, buoyed by a hit from Apple that helped offset some concerns about a rough week of Big Tech results in the third quarter. trimester.

The S&P 500 (^GSPC) gained 1.6%, while the Dow Jones Industrial Average (^DJI) rebounded nearly 600 points, or 1.8%. The high-tech Nasdaq Composite (^IXI) rose 1.7%. The moves came as Treasury yields climbed back above 4%.

On the economic data front, the Federal Reserve’s preferred measure of inflation showed prices still remain high in the US economy.

The core personal consumption expenditures (PCE) price index rose 0.5% in September from a month earlier, the Commerce Department said on Friday, a slight slowdown from August’s monthly pace of 0.6%. . The gauge showed a 5.1% year-over-year increase, an acceleration from the 4.9% year-over-year seen in August. Economists surveyed by Bloomberg had expected increases of 0.5% and 5.2%, respectively.

Personal income rose 0.4% for the month and consumer spending 0.6%, compared with economists’ estimates of increases of 0.4% for each measure.

Shares of Amazon (AMZN) plunged about 9% on Friday after the e-commerce giant issued fourth-quarter sales guidance that missed Wall Street estimates and delivered disappointing third-quarter results. The failure marks the second consecutive quarter that the company’s weak finances have caused double-digit percentage declines in its share price.

Meanwhile, Apple (AAPL) offered a “glimmer in a dark earnings season,” outperforming its Big Tech peers as it grappled with macroeconomic headwinds posed by inflation, rising interest rates and windy conditions. against currencies. The company reported record revenue but missed analyst projections in key categories like the iPhone and services. Shares rose 7% in intraday trading, marking the tech giant’s best day since July 2020.

Elsewhere in the tech spotlight, Elon Musk has taken over ownership of Twitter (TWTR) after a protracted bid to buy the social media platform ended Thursday night. Tesla’s CEO has fired top executives upon completing his $44 billion acquisition of the company and announced plans to reverse lifetime bans from the website.

The Twitter logo and a photo of Elon Musk are seen through a magnifying glass in this illustration taken on October 27, 2022. REUTERS/Dado Ruvic/Illustration

A busy start to Friday for investors was also marked by further reports from energy conglomerates Exxon Mobil (XOM) and Chevron (CVX), which reported earnings and revenue that beat Wall Street estimates, boosting shares of each name by about 1.4% and 0.6%, respectively.

SoFi’s chief investment strategist Liz Young said in a note that she expects more downgrades and other notable failures this quarter and next, likely to further challenge the market. However, Young noted that on the plus side, this means investors can check the “earnings take a hit” box.

“As we go through that process, we’ll probably see the economy decline a little more dramatically than we’ve seen so far,” Young said. “Several classic recession warning signs already exist, and the risks that still lie ahead bring the likelihood of an actual recession closer in sight.”

Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc

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