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S&P 500, Nasdaq Notch New Records as Amazon, Microsoft Jump

NEW YORK (TheStreet) -- The Nasdaq and S&P 500 hit an all-time highs thanks to an earnings-driven rally in shares of Amazon (AMZN - Get Report), Google (GOOGL) and Microsoft (MSFT - Get Report).

The S&P 500 hit an intraday high of 2,120 mid-afternoon Friday, but pared some of those gains by the day's end. The benchmark index closed 0.23% higher for the day and up 1.8% for the week.

The Nasdaq bounced 0.71% higher to close at a record 5,092. The tech-heavy index had notched an intraday record of 5,100 earlier Friday and closed at records on Thursday for the first time in 15 years.

Time Warner Cable (TWC) spiked nearly 5% on reports Charter Communications (CHTR) is considering making a bid, according to Dow Jones. This follows Comcast's (CMCSA) announcement earlier Friday that it was dropping its $45 billion bid for Time Warner Cable. The cable giant dropped its offer for Time Warner Cable after facing opposition from the Justice Department on antitrust concerns.

Mylan (MYL) jumped 3.5% after filing a legally binding commitment to acquire Perrigo (PRGO) for $205 in cash and stock, or around $33 billion. Perrigo rejected Mylan's unsolicited bid.

Amazon climbed 14.3% on Friday and hit an all-time high earlier in the day. The tech giant reported a first-quarter loss that was narrower than expected. A loss of 12 cents a share beat by a penny, while revenue jumped 15.1% to $22.72 billion. Second-quarter guidance of $20.6 billion to $22.8 billion was in-line with forecasts.

Amazon also revealed details of its cloud computing business, known as AWS, reporting that it had turned a profit during the quarter.

Juniper Networks (JNPR) gained 8.9% as the company beat earnings estimates in the first quarter and provided an upbeat outlook for its current quarter.

Google was up 3% despite missing earnings and sales estimates in its first quarter. The search giant said sales were hurt by a strong dollar with growth of 12% in actual dollars and 17% in constant currency.

Microsoft moved 10.2% higher after reporting strong growth in hardware and cloud computing. The tech company recorded net income of 61 cents a share, a dime better than expected, while sales of $21.73 billion climbed 6.5% and beat estimates.

Starbucks (SBUX) surged 4.8% after the coffee chain reported profit of 33 cents a share, in-line with forecasts. Sales of $4.56 billion were up 17.8% year over year and beat estimates as store traffic increased worldwide.

Xerox (XRX) tumbled 8.8% after cutting its profit outlook on a stronger dollar. The company said it expects earnings of 95 cents to $1.01 a share over the full year, down from previous guidance of $1 to $1.06 a share.

Biogen (BIIB) fell 6.7% after missing estimates on its top- and bottom-line. The biopharmaceutical company earned $3.82 a share in its first quarter, 9 cents short of estimates, while revenue surged nearly 20% to $2.55 billion but missed by $110 million.

Domestic crude oil retreated from Thursday's rally, though tensions in the Middle East continued to support Brent crude. West Texas Intermediate closed down 1% to $57.15 a barrel.

Saudi Arabian-led coalition warplanes resumed airstrikes in Yemen on Thursday, less than two days after the Saudi government said it would scale back air operations against its Middle Eastern neighbor. Saudi Arabia had launched airstrikes against Iranian-allied rebel groups that had overthrown the Yemeni government.

"A weaker dollar (aka a stronger euro) is also encouraging the crude complex higher, as ongoing negotiations between European ministers and Greece are raising hopes of an extension to its refinancing plan," said Schneider Electric commodity analyst Matt Smith. "WTI is kept somewhat in check by the ongoing supply glut in the U.S., while the rest of the complex strides on."

The number of U.S. drilling rigs declined 4.2% for the week, down 56.3% from its peak in October. The count was down 31 rigs to a total 703 rigs.

Durable goods orders in the U.S. jumped 4% in March, primarily driven by orders for autos, commercial jets and military hardware. Excluding aircraft and military goods, core orders fell 0.5%. Economists had expected a 0.9% increase after a 1.4% decline in February.

"The fall in core orders suggests that the outlook for business investment in equipment remains weak after a likely contraction in the first quarter," said Adam Collins, assistant economist at Capital Economics.

On the economic calendar in the week ahead, investors will get their first look at first-quarter growth with GDP out on Wednesday, while the Federal Reserve will meet on Tuesday for their two-day meeting. 

In earnings, Apple (AAPL) will report on Monday, and Twitter (TWTR), Ford Motor (F), JetBlue (JBLU) and GoPro (GPRO) are due for Tuesday. Yelp (YELP) will report on Wednesday, DreamWorks (DWA), Expedia (EXPE) and Exxon Mobil (XOM) on Thursday, and VF Corp (VFC) on Friday. 

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SYM TRADE IT LAST %CHG
AMZN $445.10 0.00%
MSFT $47.87 0.00%
AAPL $130.28 0.00%
FB $81.53 0.00%
GOOG $565.06 0.00%

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DOW 18,080.14 +21.45 0.12%
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