Wall Street closed on a high on Friday, with the Nasdaq Composite reaching a fresh record after strong earnings from two of America’s most recognisable technology companies lifted investor confidence across the board.
The Nasdaq added 64 points to close at 5,163, narrowly surpassing its previous record set in late June, driven largely by better-than-expected quarterly results from both Netflix and eBay. The Dow Jones Industrial Average rose 70 points to 18,120, while the S&P 500 gained nearly 17 points to finish at 2,124.
Google provided one of the day’s most closely watched results, reporting earnings of $6.99 per share for the second quarter and comfortably beating analyst estimates of $6.70. The figures were seen as evidence that the company is making meaningful progress on controlling its costs — a concern that had weighed on investors in previous quarters.
Amazon also made headlines after revealing that its Prime Day promotional sale generated 34.4 million item orders worldwide, surpassing the record previously held by its own Black Friday event. Walmart, which launched a rival sale in direct response to Prime Day, said its counter-offensive appeared to have paid off commercially.
Not all technology companies fared as well. Chipmaker AMD reported a deeply damaging quarter, losing $181 million as overall revenue fell 35 percent year-on-year. Its Computing and Graphics division was hit hardest, with sales down 54 percent as PC manufacturers reduced their orders significantly.
European markets also finished the day higher after Greek lawmakers passed an austerity package tied to a new bailout agreement, and the European Central Bank moved to increase emergency financial support to Greek banks. Oil markets moved in the opposite direction, with West Texas Intermediate futures settling at a three-month low amid growing concerns about an oversupply of crude.
Away from the markets, actor Brad Pitt and television host Bill Maher launched a public campaign against retail giant Costco, calling on the company to stop stocking eggs sourced from caged hens. Pitt wrote directly to Costco’s chief executive on Thursday asking the chain to change its purchasing policy, citing animal welfare concerns.
In other business developments, Los Angeles moved closer to allowing Uber and Lyft to collect passengers directly from its airports, while Mexico City became the first Latin American city to introduce formal regulations for app-based ride-hailing services. Goldman Sachs meanwhile reported that second-quarter profits had halved after the bank set aside $1.5 billion to cover litigation costs relating to mortgage bond mis-selling.
On the cybersecurity front, two researchers were each awarded one million United Airlines frequent flier miles after identifying vulnerabilities in the carrier’s computer systems as part of the airline’s bug bounty programme.
