NEW YORK, Oct 27 — Wall Street stocks generally climbed early today, boosted in part by a rosy earnings report from online retail giant Amazon.
The tech-heavy Nasdaq Composite Index surged 1.1 per cent to 12,732.06 shortly after trading began, while the broad-based S&P 500 advanced 0.4 per cent to 4,153.65.
The Dow Jones Industrial Average, however, slipped 0.2 per cent to 32,732.76.
Amazon reported a surge in profits yesterday for its recently ended quarter, on growing sales and more efficient deliveries — with its cloud business promising better days ahead.
The company’s shares were up 6.1 per cent this morning.
Also on Friday, government data showed a key inflation gauge, the personal consumption expenditures (PCE) price index, held steady with 3.4 per cent growth in September from a year ago.
This was the same rate as in the prior two months.
Excluding the volatile food and energy segments, the PCE price index rose 3.7 per cent from September last year, a touch below August’s figure.
The numbers did not cause a major drag on the market at first glance but “had a sticky feel to them, meaning they lacked a stronger trend of disinflation,” said Patrick O’Hare of Briefing.com.
That is apt to keep the Federal Reserve in “a more hawkish mindset,” he added in a note.
While it does not mean the Fed will be moved to raise rates soon, it indicates officials will not be thinking about a rate cut just yet, he added.
The US central bank is due to announce its latest interest rate decision next Wednesday.
Among individual companies, Ford shares slid 6.7 per cent after the automaker missed earnings expectations on Thursday and estimated an ongoing strike cost it some US$1.3 billion (RM6.2 billion). — AFP
