US stocks bounced back on Friday, on track for weekly wins as Wall Street embraced strong earnings from Apple (AAPL) and Amazon (AMZN) that eased doubts about prospects for Big Tech.
The Nasdaq Composite (^IXIC) surged 1%, while the S&P 500 (^GSPC) gained nearly 0.5%. The Dow Jones Industrial Average (YM=F), which includes fewer tech stocks, added 0.1%.
Amazon stock opened at an all-time high of $250.20 Friday. Shares soared about 12% after its third quarter results easily topped analysts’ forecasts. In particular, its cloud division, Amazon Web Services, posted a 20% jump in revenue, signaling renewed strength in enterprise demand.
Apple (AAPL) stock also hit its own record Friday morning after stronger-than-expected results helped lift its shares, as did its upbeat guidance for the all-important holiday quarter. The stock hit a high of $277.32 shortly after the market open, but quickly reversed direction.
Still, the mood on tech stocks has broadly turned following a rough day on Wall Street that saw the S&P 500 and Nasdaq lose 1% and 1.6%, respectively. Meta (META) suffered its steepest one-day drop in three years thanks to pushback over its AI spending spree.
Elsewhere in tech, Nvidia (NVDA) shares rebounded, up more than 1% as the company made a fresh push into South Korea, saying it would supply as many as 260,000 of its AI chips to companies and the country’s government. Nvidia CEO Jensen Huang also said he was “hopeful” about the one-year trade truce struck between the US and China and its implications for the company being able to sell its flagship Blackwell chip in China.
Meanwhile, shares in Netflix rose after the media giant announced a 10-for-1 stock split.
Later Friday, Federal Reserve officials will step up to speak. Investors are still assessing the fallout from their meeting this week, which brought the expected interest-rate cut and revealed deepening divisions among policymakers on the path forward.
LIVE 11 updates
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Shares in Amazon (AMZN) and Apple (AAPL) touched all-time highs Friday shortly after the market open.
Amazon stock touched a fresh intraday record of $250.50 before paring gains. Shares in the tech giant are up 10.5%.
Apple shares climbed to hit an all-time high of $277.32 before reversing direction to trade down fractionally.
The new records come after the two reported quarterly earnings after the bell Thursday that surpassed Wall Street’s expectations.
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US stocks rose on Friday at the market open
The tech-heavy Nasdaq Composite (^IXIC) surged 1.2%, while the S&P 500 (^GSPC) gained 0.6%. The Dow Jones Industrial Average (^DJI), which includes fewer tech stocks, added 0.1%.
The gains come as Wall Street embraced strong earnings from Apple (AAPL) and Amazon (AMZN) and Nvidia (NVDA) shares rose amid big AI deals abroad, easing doubts about prospects for Big Tech.
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Yahoo Finance’s Pras Subramanian reports:
Read more here.
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Netflix (NFLX) stock rose 2% in premarket trading on Friday following a report that the company was exploring a bid for Warner Bros. Discovery’s (WBD) studio and streaming business and after the company announced a 10-for-1 stock split.
On Friday, Reuters reported that the streaming company hired Moelis & Co, the investment bank that advised Skydance (PSKY) Media on its successful bid for Paramount Global, to evaluate a prospective offer on Warner Bros. Discovery. Owning that studio business would give Netflix control over successful franchises, such as Harry Potter and DC Comics.
Meanwhile, Netflix also announced a 10-for-1 stock split on Thursday afternoon. Netflix shareholders will receive 10 shares for every one share of the company they currently own on Nov. 17, the company said, meaning the stock will trade at one-tenth of its current price.
Yahoo Finance’s Myles Udland notes that while it doesn’t change the overall value of the company, some academic research has suggested shares outperform following the announcement of a stock split.
Thursday’s announcement marks the third time that Netflix has split its stock, having announced a 7-for-1 stock split in 2015 and a 2-for-1 split in 2004.
Read more here about the stock split.
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Economic data: Personal income (September); Personal spending (September) PCE price index, (September); Employment cost index (third quarter); MNI Chicago PMI (October)
Earnings calendar: Exxon Mobil (XOM), AbbVie (ABBV), Chevron (CVX), Linde (LIN), Colgate-Palmolive (CL), Canadian National Railway Company (CNI), Dominion Energy (D), Imperial Oil (IMO), Charter Communications (CHTR), Cenovus Energy (CVE), Cboe Global Markets (CBOE), T. Rowe Price (TROW), Piper Sandler (PIPR)
Here are some of the biggest stories you may have missed overnight and early this morning:
Trump urges GOP to go ‘nuclear’ on filibuster as shutdown drags on
Google is finally finding answers to its AI questions
Amazon, Apple shares surge as earnings shine
Walmart rolls out AI shopping tools after OpenAI deal
Nvidia to supply more than 260,000 AI chips to S. Korea
Blackwell chips sales in China rest on Trump: Nvidia CEO
How the Cybercab could solve Tesla’s big EV problem
AI-led investments are driving US economic growth
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Seagate (STX) and Western Digital (WDC) are rising on the heels of upbeat earnings, building on this year’s AI-fueled rally for the companies.
The two stocks are the second- and third-highest percentage gainers this year on the S&P 500 (^GSPC), only behind trading platform operator Robinhood (HOOD), per Reuters.
Reuters reports:
Read more here.
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Yahoo Finance’s Hamza Shaban reports:
If Google has already moved past its most perilous legal challenge and wiggled out of the perception of playing catch-up to its rivals, the remaining question is one of search economics: How can Google make money from AI without dismantling the foundation of its search business?
In every quarter this year, and most resoundingly this week, Google’s answer to that existential question is that AI will expand its users’ appetites for information.
Google’s AI assistant, AI overviews, and AI Mode may eventually supplant the legacy search bar that has built the company. But the search giant’s first $100 billion quarter suggests cannibalization isn’t the right frame for Google’s AI transition. Augmentation is more like it. …
“Alphabet’s execution on artificial intelligence, evidenced by strong traction for its Gemini app, which has more than 650 million monthly users, along with its ability to deliver solid advertising revenue, continues to drive results while refuting the AI-led disruption narrative,” Morningstar senior equity analyst Malik Ahmed Khan wrote in a note on Thursday. …
Investors’ reaction to Big Tech’s nonstop capex spree can seem fickle. But a reliable way to win approval is to present dazzling earnings, softening the blow of a bigger AI bill, or in Google’s case, showing that even gargantuan investments are already paying off.
Read more here in the takeaway from today’s Morning Brief.
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Big Tech earnings from Apple (AAPL) and Amazon (AMZN) were released on Thursday after the bell, with both tech giants beating Wall Street estimates.
Apple’s fourth quarter earnings beat on the top and bottom lines, but iPhone sales fell short of expectations. Apple’s stock rose more than 1% before the bell on Friday.
Amazon’s stock jumped 12% in premarket trading, as investors applauded the e-commerce company’s earnings beat.
Yahoo Finance tech editor Daniel Howley reports on the latest earnings releases from Big Tech.
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Reddit (RDDT) stock rose 12% before the bell on Friday after releasing its third-quarter earnings on Thursday, reporting a rise in daily active users (DAUs) of 19% to 116 million during the third quarter from the same period last year.
Rocket (RKLB) stock rose 7% in premarket trading on Friday after earnings and revenue beat Wall Street estimates.
Strategy (MSTR) stock gained 6% before the bell after reporting third quarter profit of $8.42 a share compared with a prior year loss of $1.72. The company said its Bitcoin (BTC-USD) holdings rose to 640,808 in the period.
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Bloomberg reports:
Read more here.
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Bloomberg reports:
Read more here.
