Amazon, Alphabet drive Nasdaq up

All three major US indexes end month higher, with the tech benchmark gaining for the sixth month

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 per cent to $945.50, while Alphabet gained 4.2 per cent to $928.50 after their results beat estimates. The two stocks also boosted the S&P 500 index.

Data showed gross domestic product gained at a 0.7 per cent annual rate, below the 1.2 per cent rise estimated by economists, as consumer spending barely increased and businesses invested less on inventories. The economy grew at a pace of 2.1 per cent in the fourth quarter.

The major indexes are on track to end the month in positive territory, with the Nasdaq posting 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 per cent in the first quarter, the most since 2011, according to Thomson Reuters. 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 said on Thursday that a “major, major conflict” with North Korea was possible over its nuclear and ballistic missile programmes. “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.

The Dow Jones Industrial Average fell 40.82 points, or 0.19 per cent, to close at 20,940.51, the S&P 500 lost 4.57 points, or 0.19 per cent, to 2,384.2 and the Nasdaq dropped 1.33 points, or 0.02 per cent, to 6,047.61. During April, the Dow gained 1.3 per cent, the S&P rose 0.9 per cent and the Nasdaq jumped 2.3 per cent.