Wall Street opens in green, hope after tech, the Fed, Corporate News

July 29 (Reuters) – The New York Stock Exchange opened slightly higher on Friday, buoyed by positive forecasts from Apple and Amazon and hopes for a less aggressive monetary policy after the announcements of the Federal Reserve.

In early trade, the Dow Jones Index gained 48.13 points, or 0.15%, to 32,577.76 points and the broader Standard & Poor’s 500 rose 0.70% to 4,101.01 points. .

The Nasdaq Composite takes 1.04%, or 126.302 points, to 12,288.895.

Investor worries about a bigger hike in interest rates began to ease after the US Commerce Department said on Thursday that the US economy had unexpectedly contracted for the second straight quarter.

“The Fed is really between a rock and a hard place because will it fight inflation or will it give in to slowing economic growth?” said Paul Nolte, portfolio manager at Kingsview Investment Management.

Consumer spending in the United States rose more than expected in June as Americans paid more for goods and services with monthly inflation at its highest since 2005, the Commerce Department said on Friday.

Apple opened 2.76% higher after the iPhone maker noted improvements on parts shortages and strong iPhone demand despite the backdrop.

Amazon, meanwhile, climbed 10.33% after forecasting a jump in third-quarter revenue on the back of higher fees for subscriptions to its Prime loyalty program.

“Big tech companies have had mixed results this earnings season, but Amazon has proven that the strongest can survive even the toughest environments,” said Laura Hoy, equity analyst at Hargreaves Lansdown.

Shares of Chevron and Exxon Mobil were up 5.85% and 2.66% respectively in early trading, after the oil majors posted their biggest quarterly profits on the back of soaring energy prices .

Intel fell -10.97% after it lowered its full-year sales and profit forecasts and missed its estimates for the second quarter due to a slowdown in demand for its chips used in personal computers.


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