The week ended in the opposite way it began, with investors clearly looking beyond the threat of rate hikes and back towards earnings, sending all three US benchmarks higher.
A strong GDP growth result was followed by an unexpected fall in consumer spending in December, which suggested the consumer may not be overheating as much as expected.
The result was a 3.1% gain in the Nasdaq, with 95 per cent of constituents finishing higher. This included Apple (NASDAQ: AAPL) which gained 7.0%, and Australian-born Atlassian (NASDAQ: TEAM) which gained 9.7% after strong earnings reports.
Apple also supported the S&P 500, which added 2.4% with the Dow Jones underperforming as the rotation into so-called value stocks reversed, up 1.7%.
Apple’s powerful quarter
Despite flagging missed sales of as more than US$6 billion due to supply constraints, Apple managed to smash the quarterly revenue record, reaching US$124 billion in December.
The result saw earnings jump to US$34 billion, on the back of a record quarter for iPhone sales, up 9%, driven by a surge in Chinese demand for the iPhone 13.
Mac sales grew 20%, driven by the new M1-powered devices, whilst iPads naturally underperformed after two years of restocking.
US stock markets higher across the week
Despite being the centre of rate hike threats, the S&P 500 outperformed the local market over the week, finishing 0.8% higher. Meanwhile, the Dow Jones gained 1.3% and the Nasdaq finished flat.
Back home on the ASX, the S&P/ASX 200 (ASX: XJO) is tipped to open lower this morning. For a round-up of the latest news, check out my ASX 200 morning report.
