S&P flat as gains in Microsoft offset tariff fears
Microsoft rose as much as 3.6 percent to a record high of $108.20 after its quarterly results topped estimates on strong performance of its Azure cloud computing business.
The S&P 500 was trading flat on Friday as Microsoft's robust results helped offset escalating tariff worries after President Donald Trump said he was ready to impose levies on $500 billion worth of goods from China.
The information technology sector rose 0.5 percent, the most among the 11 main index S&P sectors.
Shares of trade-sensitive industrial companies such as Caterpillar and 3M fell more than 1 percent and weighed on the Dow Jones Industrial Average.
Trump's comments on tariffs, which followed the United States and China imposed tariffs on $34 billion worth of each other's goods this month, worried investors already grappling with the impact of a strengthening dollar on corporate results.
"The market does tend to react whenever there is a statement on tariffs," said Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin, Texas.
"The market was weak yesterday and often times in the absence of news to swing it to the other direction, you'll get a little bit of follow through."
As the second-quarter reporting period gains momentum, analysts forecast have risen as more companies top profit expectations.
At 10:01 a.m. EDT the Dow Jones Industrial Average was up 2.08 points, or 0.01 percent, at 25,066.58, the S&P 500 was up 1.77 points, or 0.06 percent, at 2,806.26 and the Nasdaq Composite was up 25.63 points, or 0.33 percent, at 7,850.93.
State Street dropped 7.5 percent after the U.S. custodian bank said it would fund its $2.6 billion acquisition of investment firm Charles River Development by suspending shares buybacks and issuing new equity.
Advancing issues outnumbered decliners by a 1.00-to-1 ratio on the NYSE and for a 1.35-to-1 ratio on the Nasdaq.
The S&P index recorded 10 new 52-week highs and two new lows, while the Nasdaq recorded 61 new highs and 19 new lows.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)
- Tata Motors shares plummet 29.5 pct on biggest-ever quarterly net loss
- Tata Motors shares dive nearly 18%; m-cap drops by Rs 9,123 cr on biggest quarterly loss
- UPDATE 1-Brazil's Vale evacuates 500 people from dam area in preventive measure
- Andhra allots 500 acres for proposed Bhogapuram Airport
- MNS chief Raj Thackeray arranges mass wedding of 500 tribals in Maharashtra