Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

S&P 500 Rides Apple Rally Higher as Tech Fights Back

Stock MarketsJan 29, 2022 03:18
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Yasin Ebrahim

Investing.com – The S&P 500 rallied Friday, as blowout quarterly results from Apple put tech back into the driving seat following a recent rout amid jitters about a faster pace of U.S. Fed rate hikes. 

The S&P 500 rose 1.1%, the Dow Jones Industrial Average gained 0.56%, or 189 points, the Nasdaq jumped 1.6%.

Apple (NASDAQ:AAPL) rose more than 5% after reporting quarterly results that topped analysts’ estimates following better-than-expected iPhone sales despite a drag from supply-chain issues.

The tech giant also said it expected supply-chain problems to improve, boosting sentiment on broader tech stocks.

“[Tim] Cook is calling out some supply chain improvement for the March quarter which are ‘calming words heard around the tech world’ and much needed good news in what has been a market storm to start 2022,” Wedbush said in a note.

Facebook (NASDAQ:FB), Google-parent Alphabet (NASDAQ:GOOGL) Amazon (NASDAQ:AMZN),  and Microsoft  (NASDAQ:MSFT) were more than 1% higher.

As well as bullish earnings, tech was also helped by a fall in U.S. bond yields following economic data showing inflation continues to gather steam at a time when the consumer has pulled back on spending.

Consumer spending fell 0.6% in December, representing the largest monthly decline since February. The slowdown in spending, however, was largely attributed to the impact of the omicron variant.

“Spending was hit hard by a combination of the Omicron hit to discretionary services and people’s willingness to visit malls, alongside a void left by earlier-than-usual holiday shopping, triggered by fears of shortages of popular items,” according to Pantheon Macroeconomics.

The core personal consumption expenditures price index, the Fed's preferred gauge of inflation, rose by 4.9% the fastest pace since 1983.

Visa (NYSE:V) was also a big gainer on the day, after delivering fiscal first-quarter earnings and revenue that topped Wall Street estimates as stronger cross border payment volumes bolstered growth.

“After sentiment shifted away from established payment companies, Visa’s relative valuation/growth presents a significant buying opportunity for investors focused on sustainable growth,” Oppenheimer said in a note.

Robinhood Markets (NASDAQ:HOOD), meanwhile, delivered disappointing guidance on revenue for its fiscal first-quarter after users fell in the fourth quarter, but the shares of the trading platform pared losses to trade more than 4% higher.  

Energy proved an exception to the rally, weighed down by a more than 3% decline in Chevron (NYSE:CVX) after the oil major reported quarterly results that missed on the bottom line.

Caterpillar (NYSE:CAT), a Dow index bellwether, was also nursing losses of more than 5% as better-than-expected quarterly results were overshadowed by a fall in margins as supply-chain woes drove up costs.

S&P 500 Rides Apple Rally Higher as Tech Fights Back
 

Related Articles

Uncertainty Ahead for JD.com, Says Morgan Stanley
Uncertainty Ahead for JD.com, Says Morgan Stanley By Investing.com - May 19, 2022

By Sam Boughedda Investing.com -- Morgan Stanley analyst Eddy Wang reiterated an Overweight rating and $80 price target on Chinese e-commerce company JD.com Inc (NASDAQ:JD)...

AMC Slips After Taking Stake in Cinema Ad Company
AMC Slips After Taking Stake in Cinema Ad Company By Investing.com - May 19, 2022

By Liz Moyer Investing.com -- AMC Entertainment Holdings Inc (NYSE:AMC) shares slipped 1.6% after disclosing it acquired a 6.8% stake in National CineMedia. Shares of National...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email