US Stocks Rise on Solid Earnings and GDP Data

U.S. stocks inched closer to record levels on Friday, boosted by robust earnings from Google-owner Alphabet and Intel, and data that showed the domestic economy slowed lesser than expected in the second quarter.

The Commerce Department said GDP increased at a 2.1% annualized rate in the second quarter, higher than a 1.8% rate that economists polled by Reuters forecast.

Hopes that the Federal Reserve will cut rates by at least 25 basis points at its policy meeting at the end of this month have powered a solid run in stocks this month, helping Wall Street scale record levels.

The S&P 500 .SPX and Nasdaq .IXIC indexes are now within striking distance of another all time high.

“This is just what the market needed, not so soft that the economy is slowing down precipitously and not so strong that the Fed is going to reverse course,” said Art Hogan, chief market strategist at National Securities in New York.

via Reuters

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