The S&P 500 gained 0.5%, while the Nasdaq climbed 0.8%. The Dow traded flat while major indexes pared gains after National Economic Council Director Larry Kudlow said he would not expect a “grand deal ” to come out of next week’s U.S.-China trade talks.
Twitter shares gained 10% on the back of second-quarter results that topped estimates. The social media company also reported a 14% rise in daily active users.
Service industry stocks such as Starbucks and McDonald’s also contributed to the gains. Starbucks gained 7.5% after reporting same store-sales growth for the previous quarter that crushed estimates. McDonald’s climbed 1.3% as promotions led better-than-expected U.S. same-store sales.
Alphabet reported positive earnings Thursday and announced a massive $25 billion share repurchase program. The results and buyback sent the stock up 9.8%.
The U.S. economy expanded by 2.1% in the second quarter, the Commerce Department said Friday. Growth was driven by a 4.3% increase in consumer expenditures, which offset a 5.5% slump in business investment. The broadest measure of the U.S. economy was expected to come in at 1.8%, according to economists surveyed.
The data release comes as traders await a potential rate cut from the Federal Reserve next week. Market expectations for a 25 basis-point rate cut are still expected.
