Dow, S&P 500, Nasdaq surge to records on strong earnings

NEW YORK: Wall Street stocks were in full-throttle rally mode Friday, with all three major indices surging to records following strong earnings reports from Intel and other companies.

The Dow Jones Industrial Average rose 0.9 percent to finish the week at 26,616.71, its third straight record.

The broad-based S&P 500 gained 1.2 percent to 2,872.87, and the tech-rich Nasdaq Composite Index jumped 1.3 percent to 7,505.77.

The records follow numerous earlier equities milestones in the wake of US tax cuts enacted last month. Company earnings announcements over the last several days have signaled higher profits ahead, further cheering investors.

"The bullish sentiment remains in place, and while we have seen some earnings shortfalls, it has still been a very constructive earnings season for the broader economy and the stock market," said Gorilla Trades strategist Ken Berman.

Investors shrugged off government data that put fourth-quarter US growth at 2.6 percent, below the 2.9 percent expected by analysts.

Intel shot up 10.6 percent after reporting record revenues in the final quarter of 2017 and forecasting stronger-than-expected sales this year. The upbeat outlook suggests demand has not suffered due to a computer chip flaw that recently weighed on shares.

Pharmaceutical shares were also skyward-bound as AbbVie released 2018 profit and revenue forecasts that topped analyst expectations, citing US tax reform and improved operational performance.

AbbVie surged 13.8 percent, while Dow member Pfizer gained 4.8 percent and Gilead Sciences advanced 5.3 percent.

Twitter jumped 9.5 percent following an endorsement by Citron Research, which often bets against companies, but said it recommended buying shares of the social media company.

But Wynn Resorts plummeted 10.1 percent after the Wall Street Journal published an investigation outlining numerous complaints of sexual misconduct by billionaire casino mogul Steve Wynn.