Stocks extend rally, post strong monthly gains

STORY: U.S. stocks added to their recent rally on Friday after upbeat outlooks from Apple and Amazon, with shares of the e-commerce giant notching their best month since 2007 and the S&P 500 and Nasdaq posting their biggest monthly percentage gains in more than two years.

The Dow ended up about a percent. The S&P 500 finished 1.4% higher, while the Nasdaq gained nearly 2%.

But George Ball, chairman of Sanders Morris Harris, said this recent rally could just be a moment of exuberance.

"Investors are trying to figure out if we're in a relief rally or if this is one of those traps that's sprung upon people in the middle of a bear market. Today, the consensus is, all right, we're going to have a mild recession. Rates won't go as high as people fear. And therefore, we are 'risk-on' and running. The bear market is over and we're back to a much more sustained uptrend. That's what's happening today. Tomorrow or next Friday could be an entirely different circumstance. I think that it may well be, by the way."

Shares of Apple gained more than 3% after the company said parts shortages were easing and that demand for iPhones was continuing.

Amazon finished up more than 10% after it forecast a jump in third-quarter revenue from bigger fees from its Prime loyalty subscriptions.

In other earnings, Chevron and Exxon Mobil shares jumped after both oil giants reported their biggest quarterly earnings ever amid surging energy prices.

Second-quarter results so far have mostly been stronger than expected.

But shares of Intel fell 8.5% after the chipmaker slashed its annual sales and profit forecasts and missed second-quarter estimates.

And shares of Procter & Gamble fell more than 6% after predicting full-year earnings below analysts' expectations.

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