Investing.com – The S&P 500 and Nasdaq notched record highs as consumer discretionaries helped offset losses in energy and tech stocks on the back of disappointing earnings.
The gained 0.46%, the rose 0.34% and the gained 0.31%.
Tech and energy proved an exception to the broader rally in the market, as investors fled the sectors following poor quarterly results from Intel and oil majors like Exxon.
Intel’s (NASDAQ:) soft revenue forecast for 2019 offset better-than-expected , sending its stock down 9% lower. The weak results weighed on the chips tocks, with Nvidia (NASDAQ:) and Qorvo (NASDAQ:) ending the day sharply lower.
Western Digital (NASDAQ:) was also hit by wave of red as Baird downgraded the chipmaker’s shares to underperform, highlighting an increasing “disconnect between significant stock appreciation (year to date) and a continued deterioration in NAND flash fundamentals.”
In energy, Exxon Mobil ‘s (NYSE:) missed estimates from Investing.com, as its refining business came under pressure. Its shares fell more 2.2%. Chevron (NYSE:), meanwhile, posted first-quarter revenues that fell short of estimates, sending its share price down 0.7% on the day.
The weakness in Chevron comes as investor attention is fixed on the company’s battle with Occidental Petroleum (NYSE:) to acquire oil and gas driller Anadarko.
Chevron CEO Mike Wirth said in a call that the company’s $33 billion deal to buy Anadarko Petroleum (NYSE:) is a “superior” offer to Occidental’s $38 billion offer to buy the company.
“Our companies simply have the best strategic fit,” Wirth added.
Losses in energy stocks were also exacerbated by a slump in U.S. oil prices as President Donald Trump again called on OPEC to raise crude production to ease gasoline prices.
But it wasn’t all doom and gloom on the earnings front, as shares of Amazon.com (NASDAQ:), Starbucks (NASDAQ:) and toymaker Mattel (NASDAQ:) rose on better-than-expected earnings, propping up consumer discretionaries.
So far, 77% of the 229 companies that reported have posted better-than-expected earnings result, according to data by Refinitiv published today.
Economic data was also in the spotlight as a deeper dive into first-quarter U.S. showed gains more mostly driven by temporary factors such as private inventory investment and foreign trade. But personal consumption, which makes up about two-thirds of economic growth, slowed.This would likely result in a drag on second quarter growth, analysts said.
Top S&P 500 Gainers and Losers Today:
Ford Motor (NYSE:), Align Technology (NASDAQ:) and Capital One Financial (NYSE:) were among the top S&P 500 gainers for the session.
Intel (NASDAQ:), Target (NYSE:) and NVIDIA (NASDAQ:) were among the worst S&P 500 performers of the session.
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