The S&P 500 Index hit an all-time high, for April 25, finishing at 2,939.88 on mixed earnings reports from Amazon and Ford, as well as solid U.S. GDP growth.
The U.S. economy expanded 3.2% in the first quarter, beating market expectations of 2.3 percent GDP growth, showing the longest expansion in American history. There are signs, however, that the U.S. economy is slowing down. Consumer spending, which accounts for about 70% of the U.S. economy grew only 1.25%, compared to 2.5% in the fourth quarter of 2018.
Ford stocks soared 9.7% on a strong first-quarter earnings report. The losses from the Chinese market were compensated by boosted demand for the car maker’s pickups and SUVs in North America. Adjusted earnings per share were 44 cents, exceeding market expectations of 27 cents. Revenue beat expectations with $37.24 billion compared to a forecasted $37 billion. A net income of $1.1 billion , however. was down 35 percent from the previous year.
Amazon shares were up 1.1% as company unveiled the slowest rate of growth since 2015. In North America and in the international markets, revenue increased 17% and 9% respectively, far below previous years’ rates. Amazon’s e-commerce business increased by the slowest pace in the company’s history—10% over the first three months of 2019.
Intel stock plunged 10% on lower than expected revenues forecast. The company forecasts $69 billion in revenues, compared to analysts’ predictions of $71.05 billion.