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Here Are 3 Hot Things to Know About Stocks Right Now

  • The Nasdaq and S&P 500 hit an all-time intraday highs and record closes Friday as Google parent Alphabet (GOOGL - Get Report) jumped after beating earnings expectations. Alphabet is Real Money's Stock of the Day.
  • U.S. gross domestic product, the broadest gauge of economic activity, fell to 2.1% in the second quarter from the first-quarter's 3.1% pace.
  • McDonald's (MCD - Get Report) posted stronger-than-expected second-quarter comparable-store sales as earnings matched Wall Street forecasts.

Wall Street Overview

The Nasdaq and S&P 500 both logged record closes and all-time intraday highs on Friday as Alphabet (GOOGL - Get Report)  jumped after beating earnings expectations and the U.S. economy grew at a better-than-expected pace in the second quarter.

The S&P 500 climbed 22.19 points, or 0.74%, to close at 3,025.86, and the Nasdaq rose 91.67 points, or 1.1% to 8,330.21. The Dow Jones Industrial Average rose 51.47 points, or 0.19%, to 27,192.45.

For the week, the S&P 500 and Nasdaq gained 1.7% and 2.3%, respectively, while the Dow advanced 0.1%.

Shares of Alphabet, which led the Nasdaq, rose 9.6% to $1,245.22 after Google's parent company posted stronger-than-expected second-quarter earnings as gains from YouTube ads and its burgeoning cloud business supported top-line growth. Alphabet is Real Money's Stock of the Day.

U.S. gross domestic product, or GDP, the broadest gauge of economic activity, fell to 2.1% in the second quarter from 3.1% in the first quarter, the Commerce Department said. The second-quarter's pace was better than economists' average estimate for 1.8% growth.

"The calls for lower rates seem even more strange in light of the growth report," said David Madden, a market analyst at CMC Markets UK. "The U.S. central bank seems to be more Trump-dependent than data dependent. Some aspects of the economy, like manufacturing, are soft but by and large it is in good shape, and the expectations for a reduction in the interest rate seem to be as a result of Mr. Trump's demands."

On the trade front, President Donald Trump said via Twitter that Apple (AAPL - Get Report) would not be granted waivers on tariffs placed on some of its planned China imports. Apple recently asked the Office of U.S. Trade Representative for relief on tariffs for parts and accessories thought to be linked to the upcoming Mac Pro, which are reportedly going to be made in China.

Apple will not be given Tariff wavers, or relief, for Mac Pro parts that are made in China. Make them in the USA, no Tariffs!

— Donald J. Trump (@realDonaldTrump) July 26, 2019

Shares of Apple were up slightly to $207.74.

In addition, Larry Kudlow, director of the National Economic Council, said on CNBC that he "wouldn't expect any grand deal" from next week's trade talks between the U.S. and China.

"Talking to our negotiators, I think they're going to reset the stage and hopefully go back to where the talks left off last May," Kudlow said.

Trump also tweeted a threat to take "substantial reciprocal action" against France for passing a digital services tax that is likely to have an impact on major American internet companies, adding "I've always said American wine is better than French wine!"

He later tweeted that the World Trade Organization was "broken" because "the world's richest" countries claim to be developing countries to avoid the organization's rules.

"NO more!!!" Trump wrote. "Today I directed the U.S. Trade Representative to take action so that countries stop CHEATING the system at the expense of the USA!

3M (MMM - Get Report) shares fell 2.3% to $173.98 after the diversified technology company said it was investigating possible violations of the Foreign Corrupt Practices Act, or FCPA, related to marketing efforts by certain business groups based in China.

Shares of Amazon (AMZN - Get Report) slipped 1.6% to $1,943.05 after the online retail giant reported mixed-second quarter results, with revenue beating consensus estimates but earnings and operating income guidance falling short.

McDonald's  ( MCD - Get Report) posted stronger-than-expected second-quarter comparable-store sales as earnings matched Wall Street forecasts. Shares rose slightly to $215.58.
 
Intel ( INTC - Get Report) shares had been climbing early in the session, but then ended down 1.1% to $51.59 after the chipmaker topped analysts' estimates in its second-quarter earnings report and announced the sale of most of its smartphone business to Apple ( AAPL - Get Report) .
 
Twitter  ( TWTR - Get Report) posted weaker-than-expected second-quarter earnings but a surprise jump in daily active users, as well as firming ad sales, supported shares. Shares were up 9.7% to $41.80.
 
  
The U.S. Justice Department on Friday gave its formal blessing for T-Mobile ( TMUS - Get Report)  and Sprint ( S - Get Report) to join forces in a $26.5 billion merger, which includes selling assets to Dish Network ( DISH - Get Report) . Shares of T-Mobile were up 5.4% to $84.25, while Sprint was up 7.6% to $7.99.
 
 
Alphabet, Amazon, and Apple are holdings in Jim Cramer's Action Alerts PLUS member club . Want to be alerted before Jim Cramer buys or sells these stocks? Learn more now.

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