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Stocks Close at Record Highs on Earnings Optimism

Stocks finish at record highs as earnings optimism lifts Wall Street sentiment.

Stocks closed in record territory Friday, with the Dow Jones Industrial Average closing above 35,000 for the first time, as earnings optimism lifted Wall Street sentiment.

The Dow finished up 238 points, or 0.68%, to 35,061, and the S&P 500 rose 1.01%. The Nasdaq gained 1.04%.

All three indexes closed at record highs. The S&P 500 and Nasdaq also set new intraday highs on Friday.

The S&P 500 was up 1.9% for the week and the Nasdaq gained 2.8%. The Dow rose 1% for the week.

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Better-than-expected results from Twitter  (TWTR) - Get Twitter, Inc. Report and Snap  (SNAP) - Get Snap, Inc. Class A Report lifted other social media names like Facebook  (FB) - Get Facebook, Inc. Class A Report

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The yield on the benchmark 10-year Treasury rose early Friday to 1.283%, recovering from lows earlier in the week, even as investors have begun worrying that inflation has bled deeper into both corporate profit projections and the broader global supply chain.

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Extra emphasis, therefore, will be placed on next week's Federal Reserve rate-setting meeting, with markets now wondering if Chairman Jerome Powell will signal an end to bond purchases when growth and employment prospects are so sensitive to the rise in delta-variant infections.

Stocks finished modestly higher Thursday as strong corporate earnings outweighed a surprising jump in U.S. unemployment claims. 

Honeywell International  (HON) - Get Honeywell International Inc. (HON) Report posted stronger-than-expected second-quarter earnings and boosted its full-year profit outlook partly because of improving sales in its aerospace division.

Quarterly earnings at American Express  (AXP) - Get American Express Company Report were better than expected thanks to a post-pandemic boom in consumer spending and the release of loan loss reserves.

Snap  (SNAP) - Get Snap, Inc. Class A Report soared nearly 24% Friday after user growth during the company's second quarter jumped the most in four years.

Snapchat had 293 million daily active users in the second quarter, which also beat
analysts’ expectations. The company added 13 million daily average users during the three months ended in June.

Intel  (INTC) - Get Intel Corporation (INTC) Report issued a third-quarter sales outlook that failed to excite investors while CEO Pat Gelsinger said the global chip shortage could extend into 2023.

Shares of the world’s biggest semiconductor maker slumped Friday, closed down 5.3%.

Honeywell and Facebook are holdings in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells the stocks? Learn more now.