The Dow Jones Industrial Average ended higher on a late surge Friday, powered by Apple's (AAPL) - Get Report big post-earnings jump and as Microsoft (MSFT) - Get Report was reported to be in talks to buy TikTok.
White House officials and Democratic Congressional leaders were set to meet Saturday to try to resolve differences over a new stimulus bill, according to Bloomberg. Emergency unemployment benefits of $600 a week expire Friday, with no plan in place to support the millions of people thrown out of work by the coronavirus shutdowns.
The Dow Jones Industrial Average rose 115 points, or 0.44%, to 26,428, the S&P 500 ended up 0.77% to 3,271 and the Nasdaq rose 1.5% to end at 10,745. For the month, the Dow rose 2%, the S&P 500 gained 5.2% and the Nasdaq rose 6.5%.
Microsoft was reported to be in talks to buy TikTok, a video application owned by China's ByteDance, The New York Times reported, citing a person familiar with the talks. President Donald Trump has been considering ordering ByteDance to unload its U.S. TikTok operations, according to the report.
The stellar reports from America's most powerful tech companies gave markets a jolt a day after data showed the U.S. economy contracted the most on record in the second quarter and as deaths in Texas, Florida and Arizona from Covid-19, the disease caused by the coronavirus, set daily records.
(Chevron reported a ) - Get Reportwider-than-expected second-quarter loss ( and warned that commodity demand won't return to pre-pandemic levels until at least the end of the year. The stock slumped 4.03%.) - Get Report
Exxon posted an adjusted loss of 70 cents a share in the second quarter, wider than analysts' estimates, as the coronavirus pandemic severely dented demand for crude. Shares fell 0.9%.
Apple posted record earnings in its fiscal third quarter and said it would split its stock 4-for-1 as the tech giant looks to make it “more accessible to a broader base of investors.”
Apple shares rose 10.5% in trading Friday.
Amazon.com (AMZN) - Get Report posted second-quarter earnings of $10.30 a share, blowing away analysts' expectations after sales jumped 40% as consumers turned to the online retailing giant during the coronavirus pandemic.
Amazon reported sales of $88.9 billion vs. year-earlier sales of $63.4 billion. The stock rose 3.85%.
Caterpillar (CAT) - Get Report posted second-quarter adjusted earnings of $1.03 a share, higher than analysts' estimates of 65 cents. Revenue of $10 billion also beat forecasts but the stock declined 3.17%.
As for economic data, personal incomes in the U.S. fell 1.1% in June, slightly more than expected, as stimulus checks from the government were reduced. Consumer spending increased 5.6% in June, lower than a revised 8.5% increase in May.