Stocks Rise to Highs on Friday
U.S. stocks traded higher on Friday on strong economic data. In the second quarter, the U.S. economy grew 2.1%, down 100 basis points from 3.1% in the previous quarter. The Dow Jones Industrial Average gained 0.19% to 27,192, the S&P 500 index rose 0.74% to 3,025 and the Nasdaq Composite Index swelled 1.11% to 8,330.
Shares of Intel Corp. (NASDAQ:INTC) fell almost 1% after announcing second-quarter results. The company posted earnings of $1.06 per share on $16.5 billion in revenue, reflecting a 2.7% decline from the prior-year quarter. The company beat earnings estimates by 22 cents and revenue expectations by $800 million.
"Second-quarter results exceeded our expectations on both revenue and earnings, as the growth of data and compute-intensive applications are driving customer demand for higher performance products in both our PC-centric and data-centric businesses," CEO Bob Swan said. "Based on our outperformance in the quarter, we're raising our full-year guidance."
Looking ahead to the full year, the company expects revenue to be $69.5 billion, up $500 million from its previous target. It projects earnings per share of $4.10 and raised its guidance for non-GAAP earnings to be $4.40 per share, up from $4.35 previously.
Yesterday, the company announced it has agreed to divest part of its smartphone modem business to Apple (AAPL) in a $1 billion transaction.
During the quarter ended March 31, Ken Fisher (Trades, Portfolio) boosted his stake by 3.3% to 25,771,499 shares.
Gainers
Universal Health Services Inc. (NYSE:UHS) +10.8%
Starbucks Corp. (NASDAQ:SBUX) +8.9%
Fiserv Inc. (NASDAQ:FISV) +6.2%
T-Mobile US Inc. (NASDAQ:TMUS) +5.4%
MGM Resorts International (NYSE:MGM) +3.8%
Losers
Mohawk Industries Inc. (NYSE:MHK) -17.6%
Cabot Oil & Gas Corp. (NYSE:COG) -12.1%
Williams Companies Inc. (WMB) -4.6%
Fortive Corp. (NYSE:FTV) -4.1%
BorgWarner Inc. (BWA) -3.5%
Global markets
The main European stock markets traded mostly higher. The U.K.'s FTSE 100 rose 0.80%, France's CAC 40 swelled 0.57%, Germany's Dax gained 0.47% and Spain's IBEX 35 slipped 0.69%.
In Asia, Japan's Nikkei 225 fell 0.45%, India's BSE Sensex gained 0.14%, Hong Kong's Hang Seng retreated 0.69% and China's Shanghai Composite rose 0.24%.
Disclosure: The author holds no positions in any stocks mentioned.
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