U.S. stocks gain amid solid tech earnings

U.S. stocks gain amid solid tech earnings

At 10:01 a.m. ET, the S&P 500 was up 4.72 points, or 0.15%, at 3,250.94, and the Nasdaq Composite was up 91.00 points, or 0.86%, at 10,678.81.

CMC Markets' Michael Hewson said: "Rising uncertainty about the United States economy, heading into the upcoming November election also appears to be weighing heavily on the USA dollar which has continued to fall heavily in Asia trading, falling to a fresh three year low, against the euro as well as a basket of currencies". Their huge size also gives their stocks' movements great sway over index funds: The four alone account for almost 16% of the S&P 500 by market value.

Meanwhile, referring to the latest round of garrulous debate in the Capitol Hill over an extension of additional unemployment benefit in context of a stabbing figure of 30.2 million unemployed Americans who had been laid off due to the pandemic-led forced business closures, a Chief Investment strategist at BMO Wealth Management, Yung-Yu Ma said on Friday's Wall Street wrap up, "If it doesn't happen in short order, there's going to be a lot of disappointment and unease".

Energy companies were also weak as the pandemic sucked away demand for oil.

"'As expected' is the best that can be said about second quarter GDP". An earlier report showed that Germany's economy, Europe's largest, suffered through its worst quarter on record during the spring.

The White House and Democrats were still negotiating on coronavirus relief aid, but not yet on a path toward reaching a deal, according to House of Representatives Speaker Nancy Pelosi, hours before the expiration of a federal unemployment benefit. First, the S&P 500 is now positive for the year.

Also helping to prop up the S&P 500 was the power of big tech-oriented stocks.

Apple, Microsoft, Amazon, Alphabet and Facebook now represent more than a fifth of the S&P 500.

Among blue-chip Dow constituents, Caterpillar Inc rose 3.6% after the heavy equipment maker beat quarterly profit forecast, while Merck & Co Inc gained 2.4% after raising its full-year earnings forecast.

Stocks posted big gains for the month, led by the Nasdaq's almost 7% climb. The yield on the 10-year Treasury ticked up to 0.55% from 0.54% late Thursday. It touched its lowest level since March 9, the day it dropped to its record intraday low just below 0.34%. "However, it's important for investors to know that the recovery in the economy is not likely to be in a straight line".

But the index erased most of an earlier of loss of 1.7%.

The Bloomberg Commodity Index rose 0.6%.West Texas Intermediate crude increased 1.3% to $40.42 a barrel.Gold strengthened 0.9% to $1,973.78 an ounce. When the shares in these top five companies decline, it can squash the gains from an otherwise robust broader market.

Information for this article was contributed by Yuri Kageyama of The Associated Press.

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"There is a little bit of a balancing act between the positives and negatives - a deluge of pretty strong tech earnings that we got last night and then the struggle in Congress to try to get the COVID stimulus package passed", said Dan Eye, head of asset allocation and equity research at Fort Pitt Capital Group in Harrisburg, Pennsylvania.

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