The Nasdaq and S&P 500 closed at record highs following strong tech earnings from the like of Stocks Google/Alphabet and Intel. Better-than-expected second quarter GDP numbers also lent support to the major averages. The S&P 500 gained 0.7% to close at 3,025, posting a record high. The Nasdaq Composite also hit an all-time high, rising 1.1% to 8,330. The Dow Jones Industrial Average closed up 51 points at 27,192. For the week, the S&P 500 and Nasdaq posted solid gains. The indexes climbed 1.7% and 2.3%, respectively. The Dow advanced 0.1% this week.

Alphabet/ Google is the real winner trading up nearly 10% following earnings. Net income grew 20% while sales rose 22% to $38.94 billion, accelerating from the first quarter 17% increase. The sales increase came from higher ad sales and growth at its cloud unit, a high-margin business.

Twitter was another tech stand out up 8% on the back of second-quarter results that topped estimates. The social media company also reported a 14% rise in monetizable daily active users. In the non tech space, Starbuck rose 8% following earnings. The Department of Justice approved the merger between T-Mobile US and Sprint. Both rose 5% and 7.4% respectively.

More than 40% of S&P 500 companies have reported quarterly earnings for the second quarter. Of those companies, 76.4% have posted better than expected results.

On the economic front, the U.S. economy expanded by 2.1% in the second quarter according to the Commerce Department. The broadest measure of the U.S. economy was expected to come in at 1.8%, according to economists surveyed in CNBC/Moody's Analytics Rapid Update. Growth was driven by a 4.3% increase in consumer expenditures, which offset a 5.5% slump in business investment.