The US stock market gained some momentum on Friday on the hopeful economic data. For the second quarter, the US economy grew more than 2 percent, which is down 100 basis points from 3.1 percent, last quarter. Still, the Dow Jones Industrial Average gained 0.19 percent, to 27,192, while the Standard & Poors index grew 0.74 percent, to 3,025, and the Nasdaq Composite Index increased by 1.11 percent, to 8,330.
As a matter of fact, both the S&P 500 and the Nasdaq Composite reached for record highs to close out the week. And with only about half of S&P companies releasing their earnings report—and three-quarters of those beating profit forecasts, two-thirds beating revenue estimates—the outlook is quite optimistic.
On that, Intel Corporation showed a 1 percent downward trend during the second-quarter. Intel posted earnings of $1.06 per share on revenue of $16.5 billion. This reflects a decline of 2.7 percent over the same period last year. Overall, the company beat earnings expectations by 22 cents and revenue expectations by $800 million.
Effectively, CEO Bob Swan comments, “Second-quarter results exceeded our expectations on both revenue and earnings, as the growth of data and compute-intensive applications are driving customer demand for higher performance products in both our PC-centric and data-centric businesses. Based on our outperformance in the quarter, we’re raising our full-year guidance.”
Intel now looks to reach revenue of $69.5 billion by year’s end, a $500 million bump from its previous target. Furthermore, projected earnings per share should reach $4.10, bringing total guidance for non-GAAP earnings to $4.40 per share (up from a previous rating of $4.35).
Intel, of course, is not the only firm to come out ahead this round. Boosts to the market also came as the result of jumps from MGM Resorts International (NYSE: MGM), T-Mobile US Inc (NASDAQ: TMUS), Fiserv INC (NASDAQ: FISV), Starbucks (NASDAQ: SBUX) and Universal Health Services Inc all up between 3.8 and 10.8 percent.