Stronger earnings drive rise in stocks

U.S. stocks pushed to record heights Friday following strong profit reports from Google’s parent company, Twitter and other big corporations.

The quarterly earnings reporting season is nearly half over, and results have generally been better than analysts had expected coming into it. A government report on Friday also showed that U.S. economic growth slowed in the spring, but it was still better than economists expected.

All the reports are emblematic of an economy that’s strengthening but still shadowed by a pile of concerns, which only bolsters investors’ expectations for the Federal Reserve to cut interest rates at its meeting next week. It would be the first cut in more than a decade, when the Fed was trying to shock the economy out of the Great Recession.

The S&P 500 index rose 22.19 points, to 3,025.86, and passed its record set on Wednesday. The Dow Jones Industrial average gained 51.47, to 27,192.45, and the Nasdaq composite also set a record after jumping 91.67 points, or 1.1%, to 8,330.21.

Friday’s report on the U.S. economy showed that consumer spending remains strong and employers continue to add jobs every month. But businesses are hesitant to invest and manufacturing worldwide has slowed amid President Donald Trump’s trade war. Inflation also remains low.

Lower interest rates could boost economic activity and goose inflation higher. Investors also see lower rates as a shot of adrenaline for stocks and other risky investments. The European Central Bank this week held its key interest rate steady, but it made clear that more stimulus is on the way.