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CORRECTED-US STOCKS-Amazon, Alphabet drive Nasdaq to record high
April 28, 2017 / 2:03 PM / 5 months ago

CORRECTED-US STOCKS-Amazon, Alphabet drive Nasdaq to record high

(Corrects bullet to show Alphabet, not Apple, hit record high)

* Q1 GDP up 0.7 pct vs. est. 1.2 pct rise

* Amazon, Alphabet rise after results beat expectations

* Starbucks falls after cutting profit forecast

* All three major indexes on track to end the month higher

* Dow down 0.08 pct, S&P flat, Nasdaq up 0.22 pct

By Tanya Agrawal

April 28 (Reuters) - Gains in Amazon.com and Google parent Alphabet propelled the Nasdaq Composite to a record high, but the S&P 500 and the Dow Jones Industrial Average were little changed as weak economic data weighed.

Amazon rose 3.1 percent to $945.50, while Alphabet gained 4.2 percent to $928.50 after their quarterly results beat estimates. The two stocks also boosted the S&P 500 index.

Data showed gross domestic product increased at a 0.7 percent annual rate, below the 1.2 percent rise estimated by economists, as consumer spending barely increased and businesses invested less on inventories.

The economy grew at a pace of 2.1 percent in the fourth quarter.

The major indexes are on track to end the month in positive territory, with the Nasdaq on track to post gains for the sixth straight month as the corporate earnings season continues to impress.

Overall profits of S&P 500 companies are estimated to have risen 12.4 percent in the first quarter, the most since 2011, according to Thomson Reuters I/B/E/S.

While strong earnings have kept the market at or near record levels, persistent geopolitical tensions in North Korea and Syria have weighed on investors’ minds.

President Donald Trump told Reuters in an interview on Thursday that a “major, major conflict” with North Korea was possible over its nuclear and ballistic missile programs.

“While we had some strong tech earnings last night, the market is taking a cautious attitude towards Trump’s comments on North Korea and other geopolitical concerns,” said Peter Cardillo, chief market economist at First Standard Financial in New York.

At 9:39 a.m. ET (1339 GMT) the Dow Jones industrial average was down 16.76 points, or 0.08 percent, at 20,964.57 and the S&P 500 was down 0.08 points, or 0.00 percent, at 2,388.69.

The Nasdaq Composite was up 13.18 points, or 0.22 percent, at 6,062.12.

Five of the 11 major S&P 500 sectors were higher, with the energy index’s 0.46 percent rise leading the gainers.

Oil majors Exxon and Chevron were up about 1.1 percent after the two companies reported quarterly profits above expectations.

Qualcomm fell 3.6 percent to $51.25 after it said Apple decided to withhold royalty payments to its contract manufacturers that are owed to the chipmaker until a legal dispute between the companies is resolved. Apple was up marginally at $143.73.

Starbucks fell 2.9 percent to $59.58 after the world’s biggest coffee chain cut its full-year profit target.

Intel was down 3.2 percent at $36.20 after the company reported lower-than-expected quarterly revenue.

Declining issues outnumbered advancers on the NYSE by 1,464 to 1,034. On the Nasdaq, 1,308 issues fell and 873 advanced.

The S&P 500 index showed 26 new 52-week highs and two new lows, while the Nasdaq recorded 54 new highs and 16 new lows. (Reporting by Tanya Agrawal; Editing by Anil D‘Silva)

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