BCN-06 Dow, S&P 500, Nasdaq surge to records on strong earnings
Dow, S&P 500, Nasdaq surge to records on strong earnings
NEW YORK, Jan 27, 2018 (BSS/AFP) – Wall Street stocks were in full-
throttle rally mode Friday, with all three major indices surging to records
following strong earnings reports from Intel and other companies.
The Dow Jones Industrial Average rose 0.9 percent to finish the week at
26,616.71, its third straight record.
The broad-based S&P 500 gained 1.2 percent to 2,872.87, and the tech-rich
Nasdaq Composite Index jumped 1.3 percent to 7,505.77.
The records follow numerous earlier equities milestones in the wake of US
tax cuts enacted last month. Company earnings announcements over the last
several days have signaled higher profits ahead, further cheering investors.
“The bullish sentiment remains in place, and while we have seen some
earnings shortfalls, it has still been a very constructive earnings season
for the broader economy and the stock market,” said Gorilla Trades strategist
Investors shrugged off government data that put fourth-quarter US growth
at 2.6 percent, below the 2.9 percent expected by analysts.
Intel shot up 10.6 percent after reporting record revenues in the final
quarter of 2017 and forecasting stronger-than-expected sales this year. The
upbeat outlook suggests demand has not suffered due to a computer chip flaw
that recently weighed on shares.
Pharmaceutical shares were also skyward-bound as AbbVie released 2018
profit and revenue forecasts that topped analyst expectations, citing US tax
reform and improved operational performance.
AbbVie surged 13.8 percent, while Dow member Pfizer gained 4.8 percent and
Gilead Sciences advanced 5.3 percent.
Twitter jumped 9.5 percent following an endorsement by Citron Research,
which often bets against companies, but said it recommended buying shares of
the social media company.
But Wynn Resorts plummeted 10.1 percent after the Wall Street Journal
published an investigation outlining numerous complaints of sexual misconduct
by billionaire casino mogul Steve Wynn.